Investigation Reveals Shell Companies Exploiting H-1B Lottery

Fri, 03 Apr 2026 00:00:00 +0000

An investigation has uncovered ten shell companies in Nebraska that submitted 576 fraudulent H-1B petitions, all linked to the same Dallas address, Comerica Bank. The Department of Labor (DOL) identified these companies, which had a staggering 99.7% denial rate compared to the national average of 2.3%. This alarming case highlights potential vulnerabilities in the H-1B lottery system.

Key Details:

Ten companies registered in Nebraska, all filing for Software Developer roles.
574 out of 576 petitions were denied, indicating a suspicious pattern.
Five zip codes used in the filings do not exist in the USPS database.
All companies incorporated between 2024 and 2025, with sequential IRS tax IDs.

The DOL’s swift action caught these companies, which displayed clear signs of fraud, including identical typos in their filings. The investigation raises questions about the integrity of the H-1B lottery process and the potential for more sophisticated schemes that could exploit similar weaknesses.

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Investigation Reveals Shell Companies Exploiting H-1B Lottery