Texas AG Sues Chinese-Owned Firm Over Alleged H-1B Visa Scam
WASHINGTON — Texas Attorney General Ken Paxton has sued a North Texas company and its Chinese owner, alleging they used fake childcare businesses to fraudulently seek H-1B visas and mislead regulators.
The lawsuit, filed in Collin County, names Golden Qi Holdings LLC and Yuan Yao, a citizen of the People’s Republic of China. It alleges they advertised childcare and autism therapy services that did not actually exist.
Paxton said the case grew out of a broader investigation into alleged abuse of the H-1B visa program.
“Let this be a warning to anyone considering trying to scam the H-1B visa programme. I will continue fighting to ensure that the H-1B programme serves the interests of Americans, not Chinese nationals, and that those who abuse the programme are held accountable to the fullest extent of the law,” Paxton said.
“My office will continue to work to stop any foreign national from entering this country unlawfully,” he added.
According to the lawsuit, Yao owned and managed several Texas entities, including Golden Qi Holdings, that allegedly used websites to present themselves as active childcare facilities in Allen, Texas.
One of the businesses, Allen Infant Care Center, described itself online as a place “where every baby blossoms!” and invited parents to “come visit us [to] see the loving care we provide.”
But the lawsuit says Blaze Media reporter Sara Gonzales visited the listed address and found “an empty building and a playground overgrown with vegetation.”
The petition says an individual familiar with the property told Gonzales the facility had not operated “for some time” and alleged that Yao “sells visas.”
The lawsuit also claims the businesses filed visa petitions with U.S. Citizenship and Immigration Services and the State Department for workers in roles ranging from software developers to supply chain analysts.
Texas alleged that Golden Qi Holdings submitted 20 Labor Condition Applications between 2024 and 2026 for jobs including software engineer, market research analyst, app developer, financial analyst and business intelligence analyst.
The state said neither Allen Infant Care Center nor DFW ABA Center had licenses to operate childcare facilities in Texas. It also alleged that neither Yao nor Golden Qi Holdings had childcare licenses.
The complaint seeks temporary and permanent injunctions to stop the alleged operations, remove advertisements for childcare services and bar the defendants from sponsoring H-1B visas tied to the Allen address.
Texas is also seeking civil penalties of up to $10,000 for each alleged violation of the Texas Deceptive Trade Practices Act, along with additional penalties under the Texas Human Resources Code.
The H-1B visa program allows U.S. employers to temporarily hire foreign workers in specialized occupations, particularly in technology, engineering and finance. Indian professionals make up the majority of H-1B recipients each year, making visa scrutiny closely watched in India.
The lawsuit comes amid a growing political debate in the United States over immigration enforcement, foreign influence concerns and alleged misuse of employment-based visa programs. Texas, under Paxton, has increasingly pursued legal action tied to immigration and national security issues. (Source: IANS)
