Texas Attorney General Ken Paxton Wednesday announced a sweeping investigation into H-1B visa abuse, starting with three North Texas businesses suspected of engaging in fraudulent activity—including entities identified in videos that were widely-circulated online.
“Any criminal who attempts to scam the H-1B visa program and use “ghost offices” or other fraudulent ploys should be prepared to face the full force of the law,” he wrote on X.
“Abuse and fraud within these programs strip jobs and opportunities away from Texans,” he wrote vowing to “use every tool available to uproot and hold accountable any individual or company engaged in these fraudulent schemes.”
“My office will continue to thoroughly review the H-1B visa program and always work to put the interests of Americans first,” he added.
READ: No more H-1Bs in Texas: Gov. Greg Abbott halts H-1B hiring (January 28, 2026)
The probe follows Governor Greg Abbott’s directive to freeze new H-1B petitions across state agencies and public universities, citing misuse of the program and prioritizing American workers.
Paxton alleged the businesses under investigation have likely engaged in illegal activity to scam the H-1B visa program by setting up sham companies featuring websites advertising nonexistent products or services to Texas consumers in order to fraudulently sponsor H-1B visas.
As part of the investigation, Paxton has issued Civil Investigative Demands (“CIDs”) to three North Texas companies for allegedly sponsoring “numerous H-1B visas in recent years” despite a lack of evidence that they actually provide any of the products or services advertised.
Evidence, according to a media release from his office, has suggested that one of the businesses under investigation registered a single-family home as its office address and, on its website, listed its worksite address as that of an empty, unfinished building.
READ: ‘Best thing Trump did to corporate America’: Canadian Indian CEO on stricter H-1B rules (January 27, 2026)
Paxton’s office has also demanded documents identifying all employees working for these companies, records detailing the specific products or services provided, financial statements, and communications related to company operations of the three North Texas businesses.
Abbott’s earlier H-1B freeze also required state agencies and public universities, to submit a report to the Texas Workforce Commission by March 27 that identifies how many H-1B visa holders the agency currently sponsors, how many applications and renewals it has filed, the country of origin for the H-1B visa holders, their roles, when their visa expires, and any proof that the agency tried to fill the job currently held by a visa holder with a Texas candidate first.
The freeze on new and renewal applications will remain in effect until after the completion of the 90th state legislative session, which will gavel in on January 2027.
“State government must lead by example and ensure that employment opportunities — particularly those funded with taxpayer dollars — are filled by Texans first,” Abbott stated announcing the investigation.