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Massive #H1B Fraud Scheme Discovered

The U.S. government has indicted a Virginia couple for running an H-1B visa-for-sale scheme the government said generated about $20 million.

Raju Kosuri and Smriti Jharia of Ashburn, Va., along with four co-conspirators, were indicted last week by a federal grand jury in Alexandria, Va., according to the Department of Justice (DOJ).

The scheme involved, in part, setting up a network of shell companies and the filing of H-1B visas applications for non-existent job vacancies.

Workers were required to pay their own visa processing fees and were treated as hourly contractors, the DOJ alleged. Treating H-1B workers as hourly contractors is in violation of the program rules, the government said.

More than 800 H-1B visa petitions were submitted over a period of nearly 15 years, according to court documents.

The six people indicted in the case face prison time of anywhere from 10 to 30 years if convicted.

Neither Kosuri nor Jharia could be reached immediately for comment.

The H-1B program may be susceptible to fraud. In 2008, the U.S. Citizenship and Immigration Service reported that a review of 246 randomly selected petitions filed in 2005 and 2006 revealed a fraud rate of just over 13%.

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on IDG Answers

What is 'Google dorking' and why is it a security threat?

The government's analysis found forged documents, fake degrees and shell companies with fake locations.

Jail time is a risk for people convicted of H-1B fraud, although it's difficult to know how many have actually been sent to prison for it. One H-1B fraud case that may involve a prison sentence is pending in Texas.

A U.S. District Court judge in Dallas is scheduled to consider sentencing, as early as this week, for brothers Atul Nanda and Jiten "Jay" Nanda, for visa fraud following a jury verdict last November. They face up to 20 years in prison for using the visa program to create an on-demand workforce, the government alleged.

Hashtag #H1B thrives on Indian bashing. There are 1000s of posts on the topic, all kinds of companies, very little BAC there

Check out all the posts here on layoffs dot com with #H1B hashtag, there are a lot of unhappy people here

One of parents was a loyal Xerox employer for almost 40 years. Because of what I witnessed years ago in my own family, I now am a part of an anti-outsourcing group that has mobilized to expose the behaviour of certain U.S.-based employers in regards to U.S. workers. I would love to have the opportunity to talk to as many other workers as I can from Xerox whose jobs have been outsourced. Politicians need to get involved and all of your stories should be told to the public. Taking advantage of Federal programs (i.e. the HB-1 visa program that Xerox has received money from) only to continue cutting U.S. jobs is criminal behaviour in my opinion. Please let me if you or anyone you know is interested in communicating further. If you are already laid off, you have nothing to lose; you can only gain from exposing what is going on in order to prevent this from happening to others here and across the country who are employed by such greedy corporations. The general community has no idea how deep this actually goes. Only you can shed light on this, because you lived through it first hand.

#GOLD

Working in the Silicon Valley as an engineer use to be the ultimate career.

Today, the Valley has been overrun by H1Bs from India and Pakistan that refuse to work with other ethnic groups. Additionally, Indian management has taken over the best companies in the valley that now just want to hire H1Bs from India. The H1Bs that came to the valley from India 15-20 years ago were really sharp. Yet, today, the H1Bs coming from India are subpar to the American standard and are mostly a burden to the workplace. Today, High Tech wages are suppressed, Real Estate and Rents continue to rise, and the highest skilled tech workers in the valley have now been deemed too expensive and therefore obsolete. Everything that made the Valley wonderful and worthwhile is now gone. We've given the best jobs in the world to the H1B, allowed the H1B to reside in the best geographic location in the world, and now the highest skilled workers in the world have been disparaged and displaced by the #H1B over cost rather than skill. American High Tech workers are not being put first. In fact, they are being put last. American High Tech workers are being treated as third class illiterate felons while the H1B is being treated as a first class citizen that does not hold citizenship. If you are an American Citizen and have been displaced by an H1B - then it is time to write to your congressmen and ask for the denial of any further work visas to the country.

http://www.foxnews.com/tech/2016/04/29/zuckerberg-spent-19m-on-personal-security-over-past-three-years.html?intcmp=hplnws

layoffs due to zuckster's bodyguards needing nice new FN 15's. and why doesn't he fill those roles with "the best and brightest" on #h1b? oh yeah, right...

#Outsourcing and #Offshoring

100+ offshore jobs added in the last six months, and MCK people sent over to train them.....

Sad to see the slow death continue.

Too bad Paragon leaders are making the same bad mistakes that ki-led Horizon, but not using lessons learned.

The only people in my office that have not packed their desks are #contractors and onshore #H1B people. Offshoring has worked so well in the past (sarcasm).

MCK management seems incapable of learning from past failures. #lessonslearned

Give us more details - I can ping Sara Blackwell ESQ down in Sarasota, she specializes in cases like this (she went after Disney on that #H1B case where they brought in Indians to replace US workers in Orlando)

Is Bechtel doing #H1B visas too? Outsourcing?

Layoff folks in Glendale - Hire folks in India

Bechtel is laying off employees in the US (Glendale AZ in particular has been hard hit) and sending those jobs to New Delhi.

So much for the much touted claim that Bechtel values their long term employees. New Delhi has plenty of job openings right now.

And meanwhile our US based office is wondering how many of us will get the ax this month. Disgusting.

This is public information, it's published by the dpts of labor / immigration - there are many sites that take the data and present it - you can see how many #H1B folks we brought onshore over last 3 years by visiting this site (I entered IBM keyword and a wild card into the query) - about 30K is listed right now, you need to be looking if they are approved or not, most of them are though:

http://h1bdata.info/index.php?em=IBM%25&job=&city=&year=All

How many H1Bs does IBM have in their US team

How many H1Bs does IBM have in their US team? No one has talked about it.

The whole #H1B program needs to be cancelled and they need to go back to the drawing board here. I think we should go to an auction based system - for example, if there is an H1B spot, instead of doing a lottery, let's give it someone who's willing to pay the most for this. This would eliminate IBM from the process as they do not want to pay anything. This will take care of Tata, Accenture, Infy and others.

So, if you really need an H1B, pay up, there is a ton of smaller companies that stand no chance in the lottery system, but they would be more than willing to shell out 20, 30, 50K for a good talented resource.

Sen. Durbin calls Abbott Labs' IT layoffs 'harsh and insensitive’

More H-1B shenanigans at yet another company, a la, SCE, Disney, & Eversource Energy. . .

http://www.computerworld.com/article/3039353/it-careers/sen-durbin-calls-abbott-labs-it-layoffs-harsh-and-insensitive.html

How is this great news?

That's great news.. Trump will start blowing the trumpet in favor of H1B if at all he comes to power. Long live #H1B visas and other guest worker programs.

Trump on #H1B Visas

Trump was explicit on #H1B last night in Detroit - here is the transcript with his remarks on the issue:

KELLY: Mr. Trump, your campaign website to this day argues that more visas for highly skilled workers would, quote, "decimate American workers". However, at the CNBC debate, you spoke enthusiastically in favor of these visas. So, which is it?

TRUMP: I'm changing. I'm changing. We need highly skilled people in this country, and if we can't do it, we'll get them in. But, and we do need in Silicon Valley, we absolutely have to have.

So, we do need highly skilled, and one of the biggest problems we have is people go to the best colleges. They'll go to Harvard, they'll go to Stanford, they'll go to Wharton, as soon as they're finished they'll get shoved out. They want to stay in this country. They want to stay here desperately, they're not able to stay here. For that purpose, we absolutely have to be able to keep the brain power in this country.

(APPLAUSE)

KELLY: So you abandoning the position on your website...

TRUMP: ... I'm changing it, and I'm softening the position because we have to have talented people in this country.

Source: https://www.washingtonpost.com/news/the-fix/wp/2016/03/03/the-fox-news-gop-debate-transcript-annotated/

Trump was explicit on #H1B last night in Detroit - here is the transcript:

KELLY: Mr. Trump, your campaign website to this day argues that more visas for highly skilled workers would, quote, "decimate American workers". However, at the CNBC debate, you spoke enthusiastically in favor of these visas. So, which is it?

TRUMP: I'm changing. I'm changing. We need highly skilled people in this country, and if we can't do it, we'll get them in. But, and we do need in Silicon Valley, we absolutely have to have.

So, we do need highly skilled, and one of the biggest problems we have is people go to the best colleges. They'll go to Harvard, they'll go to Stanford, they'll go to Wharton, as soon as they're finished they'll get shoved out. They want to stay in this country. They want to stay here desperately, they're not able to stay here. For that purpose, we absolutely have to be able to keep the brain power in this country.

(APPLAUSE)

KELLY: So you abandoning the position on your website...

TRUMP: ... I'm changing it, and I'm softening the position because we have to have talented people in this country.

Source: https://www.washingtonpost.com/news/the-fix/wp/2016/03/03/the-fox-news-gop-debate-transcript-annotated/

This is from Qualcomm's page here: Post ID: @FlBD4hi-1uic

Disney is the worst of them all - they have a corp office in Orlando, very close to the park, it's on Celebration way - it's like an IT factory, they've built it recently. The carnage is taking place there, not in the park. They are working with a ton of outsourcing companies and laying people off. So for example, they would work with Accenture, and let's say you work for 50 bucks/hr - Accenture tells them, hey I will replace that guy for 30 bucks/hr. But the issue is they cannot find anyone who will do it for 30, so they go to Accenture India and they bring someone from there to work on-shore in Orlando here. So, accenture pays the guy 20 bucks and they pocket 10. The guy is totally underpaid in US terms, but in Indian terms he just doubled his salary.

So you have armies of folks like that who come through Infosys, TATA, Accenture, Deloitte, it's the same concept - the consulting companies have relationships in IT departments, they walk around and look what parts of business they can take, and they pitch low cost resources - it works most of time.

This has nothing to do with 'best and brightest" concept that #H1B was to cover - this is pure labor arbitrage where the outsourcing companies are making a ton of money by f---ing American workers.

All management at the target company knows about this, they are part of this scam as well.

Finally, here is the kicker - the visa application process is expensive and cumbersome (I think it's over 1000 bucks to apply). Also, if you apply you have about 10% chance of being accepted. So, what Infosys (and other) does is compensating the cost - so they will make let's say 10,000 applications, they pay ten million for that but they will manage to get only 1,000 people a visa - it's still good for them as they make 30K per resource a year, the average tenure on a contract is three years. So on each person they make 90K in three years, so on 10 million invested, they get 90 million in outsourcing revenue - this stuff is pure margin for them (let's say 80% margin as overhead is minimal).

So, if you look at the stats with TATA, Infosys, WIPRO, etc. bring in 3K every year, there is ton of money in this game - this is HIGHLY profitable for them, as contracts are long term and they go so deep in that the client have very difficult time getting rid of the folks who get hired.

I hope this helps...

One of the key reasons you lost your job is that every year 100,000 IT resources are imported at low rates via #H1B visa system. The system is designed to bring in the best and the brightest of the world, in reality, they are bringing in low to medium skilled workers and they are paying them 50% of what the market would bear here.

For example, companies like Tata, Wipro, Accenture and IBM will bring in a testing engineer at $60K/year and replace a $100K/year domestic testing engineer. The vast majority of H1B folks are brought in to work at low and med level jobs - has nothing to do with talent, it's all about compensation. Once they are in, they are stuck at $60K (legal minimum) for about 5 years and they cannot move companies as they would lose the visa sponsor.

So, do your math, and figure out how many Indians were imported at 50% of regular wage since late 90s - what's that, probably 20 years of imports, at 50K to 100K resources a year, you see where I am going with this.

Trump was strongly opposing this scam, however he flip-flopped on it last night and did a full 180 on the issue. In addition, really, this has nothing to do with the president as it'll have to clear the Capitol, and I am not sure if that would ever happen.

Also, keep in mind, Trump's rhetoric about tariffs is a zero sum game - while we have a large deficit, it's only a few percent of our international trade - so, if you start with tariffs you basically shut down international trade which is great as we will not be importing shirts from China and we'll start making them in Yuma, AZ. But on the other hand, China will also stop buying Cummins engines, Boeing Airplanes, IBM Consulting, etc. So, now we are all fair and square, and they do not f--- us anymore, but now we are both f---ed and shipped back to our lovely economic medieval swamps.

I'd rather have a status quo even though I hate everything about it - going Trump is a suicidal experiment...

The anchor has no clue what he talks about

Former Disney Employees

Former Disney Employees Speak Out About Outsourcing Of High-Tech Jobs Through The #H1B Visa Program: https://www.youtube.com/watch?v=LAHtNQo3eog

What are you basing that 75% #H1B number on?

Got layed off in 2009 within Data Protection Tech Marketing group at corporate, actually met the current President while he was a consultant for an outside firm and he told me he may become the CEO of NetApp.

I have been in High Tech for way to many years and always enjoyed NetApp. I just started doing some NetApp work again for a firm. I just am happy to have a job as a middle class engineer, however I read an article about 75% of Silicon Valley Tech workers are foreign i.e. H1B visa. It is bogus for corporations to say they need more when these lays offs happen so often!!!!!! People are the greater assets then Wall Street. So be carefull what you wish for CEO's

Massive Outsourcing Move

Now, we have 180 folks gone, and Wipro will be taking over, they will for sure load the staff with super cheap #H1B visa holder, indentured servants who just work and ask no questions. Perforect. We were told about the cuts on Feb. 22 the last day on payroll will be April 22 2016. Way to go!

Fire American workers

American Express went downhill fast when their motto was fire American workers and force them to train their #H1B replacements or Indian outsourced workers in order to get severance.

Year after year until their quality was below Capital One. No matter how many JDPOWER awards they buy. You put lipstick on a turd it still a turd.

Here is a quick summary of the severance guidelines (link below) - most people here will give you info that they have - which is in many cases outdated.

Ginni changed the rules as they prep to lay off more folks and they simply do not care about workforce any more - IT is being #commoditized and there always a brand new and super-cheap #H1B waiting to foll your shoes...

Anyhow, there is the link: http://www.zdnet.com/article/ibm-alters-severance-terms/

#H1B Game Over

The Senate Subcommittee on Immigration will hold a hearing Thursday on "The Impact of High-Skilled Immigration on U.S. Workers." Its first witness will be an IT worker who trained his visa-holding replacement.

Leo Perrero, an IT worker at Disney until he was laid off in January 2015 -- along with 200 to 300 co-workers -- is one of six scheduled to testify.

A perfect example of planned #H1B abuse

We HP and was asked to come from a perfectly good job but promised more technical abilities and chances to show my stuff. A true pipe dream as I watch good knowledgeable people get the layoff notice and our customers are suffering big time. Jobs are going to Indian workers brought onshore because they will work like dogs even though our client cant understand a word they say and neither can we. Morale is in the toilet and everyone is just trying to hang on as long as they can. I don't see HP around in five years andI can only hope a decent conglomerate buys it out. Meg Ryan can continue to collect her huge salary and bonus and try to pretend to the employees that HP will make it.

No raises in the last two years shows whats coming. I have always tried to do my very best but it gets harder as I am truly embarrassed for our client and the service we are NOT providing anymore.

Nobody wants to talk to the press

would you be interested in talking to press. I have friends at press. They would love to hear these kind of stories. Outsourcing, replacing by cheaper #H1b etc are stories they are always looking for. This would be confidential.

As long as there are cheap #H1B visa workers they will outsource, once that stops, jobs will return to Americans in IT

Citi Job Cuts 2016

Citi's Technology organization is going to be hit with a major downsizing. Already one global Technology head (MD) for their offshore consumer business and one of his lieutenants have been put on garden leave. More to follow soon. Welcome the #H1B cohort...

With the new consumer banking head Stephen Bird deciding to create a Fintech unit within the bank, the existing technology unit will be under pressure both for budget as well as projects. This could lead to the eventual dismemberment of the existing technology unit.

As long as there are more #H1B workers to hire, you will see layoffs at Pepsi - it's a simple math kind of a thing - with every visa person they bring on board (internally or as a outsourced or contracted person) they cut payroll in half (for that particular position)...

Frito Lay and Heinz Merger

Anyone heard anything about Heinz buying FL? Not sure I'd care much if I got popped... I'm so sick of the 18 month layoff cycle, it's ridiculous. Makes senior management look TOTALLY incompetent. Never seen a company that's so profitable that's so unstable.

Never made sense, good luck developing an advanced tech platform using #H1B resources