The Trump administration on 8 October 2026 warned that corporate executives and companies could face criminal prosecution, arrests, and civil lawsuits over alleged visa fraud, marking a sharp escalation in enforcement against employers accused of favouring foreign workers over American citizens. The warning was delivered at a White House press conference led by Vice President JD Vance.

Eight Companies Named, Labour Certifications Restricted

Attorney General Todd Blanche said the Justice Department was actively investigating companies suspected of violating federal employment and immigration laws. The administration simultaneously announced restrictions on permanent labour certification applications for eight named companies: Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The list spans American technology giants alongside major Indian IT and outsourcing firms.

'If a company, even including Microsoft, Adobe, or any other, discriminates against an American worker in favour of someone on the other side of the world, that company has violated the trust of the federal government and the American people and will be investigated,' Blanche said.

Criminal Arrests on the Table, AG Warns

When asked directly whether the crackdown could result in arrests, Blanche said consequences would depend on evidence in individual cases. He made clear, however, that enforcement would extend beyond administrative penalties to include criminal charges against executives and civil proceedings to recover money or halt unlawful practices. He declined to predict outcomes in specific investigations.

Visa Fraud Strike Team Launched, $1 Billion Identified

Labour Inspector General Anthony DiEsposito announced the formation of a specialised visa fraud strike team to coordinate investigations across federal agencies. 'We will follow the money, uncover the schemes, and work with Attorney General Todd Blanche to prosecute criminals,' DiEsposito said. He also unveiled a most-wanted list of 16 alleged fraudsters accused of stealing nearly half a billion dollars from Americans. The broader anti-fraud task force has so far contributed to 171 indictments, 203 convictions, 80 arrests, and more than 70 search warrants. Investigators have identified more than $1 billion for taxpayers, according to DiEsposito.

Scope Extends to Organised Crime and National Security

DiEsposito indicated that investigations would examine potential links between visa abuse and organised crime, forced labour, human trafficking, and national security threats — a framing that significantly widens the scope beyond conventional labour disputes. Vance, for his part, accused some employers of misrepresenting the qualifications and specialised skills of foreign workers in visa applications, alleging that companies used immigration programmes to replace American workers with lower-paid foreign employees.

What the H-1B and Labour Certification Rules Require

The H-1B visa programme allows American employers to hire qualifying foreign professionals in specialised occupations, subject to wage, filing, and employment requirements. Permanent labour certification is a separate employment-based immigration process. The administration's new restrictions target that certification process for the eight named companies; criminal investigations remain subject to applicable legal procedures and evidentiary standards, officials noted.

With a dedicated strike team now operational and eight major firms already named, the enforcement campaign is likely to intensify in the weeks ahead — with India's IT sector watching the fallout closely.