Sairam Yeruva (45), Corporate President of Kronsys Inc., Cygtec Inc., and Arkstek, Inc. was sentenced to 12 months and one day in prison on February 19, 2020 in federal court, Raleigh, NC for conspiracy to commit H1-B visa fraud.
A naturalized United States citizen from India and a resident of Cary, NC, Sairam Yeruva pleaded guilty to conspiracy to commit visa fraud as charged in a Criminal Information on January 7, 2019.
A Criminal Information is a formal written accusation filed by the United States Attorney.
And, as part of the guilty plea to H1-B Visa Fraud, Sairam Yeruva agreed to forfeit $2,600,000 of the criminal proceeds to the U.S. government.
The Criminal Information alleges that Sairam Yeruva and others conspired to submit false and misleading information to USCIS in support of about 183 initial H1-B petitions and at least one hundred H1-B extension petitions filed on behalf of Kronsys Inc., Cygtec Inc., and Arkstek, Inc.
According to the charging document:
… YERUVA, and others, declared in their initial petitions that their H-1B nonimmigrant foreign workers would be employed by the companies at specific work locations in or near Raleigh, North Carolina or Aurora, Colorado for the sole purpose of developing internal, or “in-house”, information technology projects. The petitions also declared that the H-1B workers would be paid the prevailing wage throughout the entirety of their H-1B status with the companies.
Rather than developing the “in-house” projects, the H-1B workers provided IT consulting services to end clients throughout the United States, thereby earning KRONSYS, INC., CYGTEC, INC., and ARKSTEK, INC. at least $26,225,000. Many of the H-1B workers were “benched” while they waited for their initial end client assignment to begin or while they were in between end client assignments. “Benching” refers to the practice of placing H-1B foreign workers in nonproductive status without pay while they search for new end client assignments.
Besides the prison term, the sentencing order of Sairam Yeruva, included a one year supervised release and a fine of $50,000.