Chicago, IL based Indian management consulting firm Mu Sigma agreed in August 2019 to a $2.5 million global settlement in Dallas, TX for visa fraud and and inducing aliens to enter and remain in the U.S.
Mu Sigma with its main delivery center in Bangalore, India was illegally circumventing U.S. government H-1B visa regulations by actively employing B1 visitor visa holders under contract within the U.S.
In addition, according to the H1-B visa fraud investigation, the Mu Sigma’s invitation letters for the B1 visa holders misrepresented the nature of the B1 visitors’ intended business.
Furthermore, Mu Sigma’s officials illegally instructed potential B1 business visitors and company handlers how to avoid detection by U.S. authorities.
Mu Sigma’s H1-B Visa Fraud
Began in 2013, the H1-B visa fraud investigation against Mu Sigma was jointly conducted by Dallas Document and Benefit Fraud Task Force, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Department of State’s Diplomatic Security Service (DSS).
According to H1-B visa fraud investigation:
Mu Sigma B1 visa holders who were illegally working in the United States were also paid in India at India-based wages, which are substantially lower than their U.S. counterparts. This unlawful employment tactic greatly increased Mu Sigma’s profit margins and the company’s ability to provide low bids for end-user contracts. Mu Sigma also required its employees to sign bond contracts that unlawfully sought reimbursement of up to $10,000 of the H-1B visa costs if an employee ceased employment before an agreed upon date. Additionally, to circumvent U.S. laws that might delay or prevent their entry into the U.S., Mu Sigma instructed its H-1B employees to misrepresent to U.S. consular and border officials their intended destination of employment within the U.S.
The H1-B visa fraud investigation against Mu Sigma was started after one of its employee whistleblower alleged to authorities how the company managers were circumventing U.S. government H-1B visa regulations by actively and unlawfully employing B1 visitor visa holders under contract within the U.S.
The investigation against Mu Sigma was two fold:
- Criminal violations of visa fraud
- Inducing aliens to come to and remain in the U.S.
H1-B visa fraud investigation against Mu Sigma identified:
- About 400 potential B1 visa violators
- More than 300 instances of illegal visa bond contracts
- Nine Mu Sigma executives and managers who actively participated in visa fraud schemes
$2.5 Million Global Settlement
Mu Sigma settled the allegations of H1B and B1 visa abuse by reaching into an agreement of $2.5 million final global settlement with Dallas Document and Benefit Fraud Task Force.
The $2.5 million global settlement for H 1-B visa fraud covers:
- $1.6 million toward the civil allegations
- $900,000 toward the criminal allegations
- A non-prosecution agreement of compliance and monitoring program
The $2.5 million global settlement between Indian management consulting company Mu Sigma and Dallas Document and Benefit Fraud Task Force was coordinated by the U.S. Attorney’s Office (USAO) of the Northern District of Texas.