H-1B scam: Texas company owned by Chinese national sued for selling foreign workers visas for $20,000

A Texas company owned by a Chinese national has been sued over allegations that it ran fake childcare businesses to fraudulently obtain H-1B visas.Texas Attorney General Ken Paxton has filed a lawsuit against Golden Qi Holdings LLC, accusing the firm of operating and advertising non-existent childcare services in order to sponsor foreign workers under the H-1B visa programme. A Chinese national, Yuan Yao, is also named as a defendant in the case.According to the lawsuit, Yao owns and manages several Texas companies, including Golden Qi Holdings, which allegedly ran websites presenting themselves as legitimate childcare providers. The services advertised never actually existed. Examples cited in the case include Allen Infant Care Center and DFW ABA Center, which were supposedly operating as childcare and autism therapy facilities.A visit to one listed site showed no evidence of an active daycare. Journalist Sara Gonzales of Blaze Media reported finding an empty building and an overgrown playground at the location associated with Allen Infant Care Center.Gonzales also alleged that the businesses had filed more than 50 labour condition applications and sponsored at least 37 H-1B visa workers for roles such as market research analyst and supply chain analyst, which appear unrelated to childcare work. During her confrontation with Yao, he declined to answer detailed questions and asked Sara to talk to his lawyer instead. “I only can tell you, everything is legal,” he said.A whistleblower cited in the reporting claimed the operation was part of a visa scheme. The individual alleged, “He sells visas,” and suggested foreign workers paid up to $20,000 for sponsorship. The whistleblower also claimed Yao’s father had ties to the Chinese government and provided financial support.The lawsuit further alleges that the businesses received more than $100,000 in federal Paycheck Protection Programme loans, which were later forgiven, but that the funds were not used for childcare operations. Prosecutors also say several listed business addresses were vacant or duplicated across multiple entities.Attorney General Paxton said: “Let this be a warning to anyone considering trying to scam the H-1B visa program. I will continue fighting to ensure that the H-1B program serves the interests of Americans, not Chinese nationals, and that those who abuse the program are held accountable to the fullest extent of the law,” he said.The case comes as Paxton’s office continues to investigate into suspected H-1B visa fraud in North Texas, where authorities say some companies may be running “ghost” operations while sponsoring foreign workers.