Paxton launches investigation into H-1B visa fraud in North Texas

Attorney General Ken Paxton announced he is investigating nearly 30 North Texas businesses for visa fraud, an escalation of a probe he announced earlier this year.

Paxton is specifically targeting H-1B visas, which allow companies to recruit and hire foreign workers in specialized fields such as information technology and medicine.

The program, which once received broad bipartisan support, has come under scrutiny in recent months by the Trump administration and some conservative voters and lawmakers.

Paxton’s announcement Thursday comes after conservative influencers flooded Frisco and other North Texas cities, alleging visa fraud and an “Indian takeover.” Indian applicants account for nearly two-thirds of approved H-1B visas.

On X, Paxton thanked one influencer, Sara Gonzales, who in January posted a video on X titled “I Exposed a MAJOR H-1B Visa Scam in Texas,” in which she visited offices and knocked on doors asking for visa and business details.

“I will not allow the H-1B program to be abused by bad actors seeking to use it as a loophole for allowing foreign nationals to invade Texas,” Paxton said in a statement. “My office will continue working to uncover and put an end to fraud with the H-1B program.”

Related: How Frisco became ground zero for wave of hate against Indian Americans

As part of the investigation, Paxton issued civil investigative demands, asking the companies to hand over documents identifying all employees, records detailing the specific products or services they provide, financial statements and communications related to company operations.

The businesses include Tekpro IT and Fame PBX, both in Plano, 1st Ranking Technologies in Lewisville, Qubitz Tech Systems in Irving, Blooming Clouds in Horseshoe Bay, Virat Solutions in Frisco, Oak Technologies in Irving, Techpath Inc. in Irving, and Techquency in Cedar Park.

In a statement, Virat Solutions called the allegations “entirely unfounded” and said it unequivocally denies any wrongdoing or misconduct. The company said it is cooperating with Paxton’s investigation and providing all relevant documentation.

“We are confident that, upon completion of the review process, the facts will demonstrate that these claims lack merit and that Virat Solutions will be fully exonerated,” the company wrote.

The other businesses did not immediately respond to phone calls or emails Thursday from The Dallas Morning News.

Paxton’s office also did not immediately respond to an email from The News asking for additional details, including a full list of the business.

In recent months, the visa program emerged as a frequent target among conservatives. Texas Gov. Greg Abbott earlier this year directed public universities and state agencies to freeze new H-1B visa applications until May 2027 so lawmakers can add “guardrails” to the program.

The issue has emerged as a flashpoint in Frisco, where the Indian American population has soared in recent decades, from 2% of the city’s population in 2000 to one-third in 2026. Paxton is from nearby McKinney.

Influencers, who urged followers to attend city council meetings, say they found vacant “ghost offices” in Frisco and Collin County used to create phony businesses to sponsor foreign workers.

Accusations of widespread H-1B fraud have not previously been substantiated, and cities have no control over the program, which the federal government administers. 

Related: All you need to know about the H-1B visa: Cost, timeline, eligibility and more

A spokesperson for Immigration and Customs Enforcement said in an email earlier this month to The News that it does not typically confirm or comment on potential investigations to protect the investigation process.

More than 17,000 new H-1B visas were initially approved in Texas in the fiscal year 2024. Of those, more than 2,000 were approved in Richardson, about 1,900 in Irving, 1,700 in Dallas and 917 in Frisco.

Immigration experts say the visas are critical for the U.S. workforce because the country simply does not have enough workers to fill jobs, particularly in science, math and engineering.

Filing and legal fees to obtain an H-1B visa can amount to tens of thousands of dollars. Last year, the Trump administration announced an additional $100,000 fee on some H-1B applications.

The lottery program is capped at 65,000 visas per year, with an additional 20,000 reserved for people with advanced degrees.

Paxton, who is challenging incumbent U.S. Senator John Cornyn, has filed a flurry of lawsuits and investigations in recent months that align with the Trump administration’s priorities. Last year, the attorney general announced investigations into cereal and candy makers over artificial food dye. 

In October, he sued the makers of Tylenol, accusing the company of failing to warn consumers about risks of taking the drug while pregnant. The company said the lawsuit lacked “legal merit and scientific support.”

Related: In Frisco, allegations of ‘Indian takeover’ plunge community into national battleground