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Thread: H-1B visas used by firm to create low-cost workforce, U.S. alleges

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    H-1B visas used by firm to create low-cost workforce, U.S. alleges

    If the company is guilty hopefully those individuals in the company who are responsible will get the book thrown at them.

    H-1B visas used by firm to create low-cost workforce, U.S. alleges - Computerworld

    Computerworld - A Texas IT services firm has been indicted by federal authorities for using H-1B visa workers to create an inexpensive "as needed" labor force.
    A multi-count indictment filed last month charged that Dibon Solutions of Carrollton, Texas only paid Visa-holding employees when there was work.
    The full scheme is outlined step-by-step in papers filed in the U.S. District Court for the Northern District of Texas, Dallas Division.
    The indictment says that Dibon recruited foreign workers and sponsored them for H-1B visas to work at the firm's headquarters, but required them to provide consulting services to third-party companies located elsewhere.

    The company only paid the H-1B workers when they were placed at a third party company, "and only if the third party company actually paid Dibon first for the workers' services," it said.
    This scheme, the indictment alleges, "provided the conspirators with a labor pool of inexpensive, skilled foreign workers who could be used on an 'as needed' basis."
    This operation "was profitable because it required minimal overhead and Dibon could charge significant hourly rates for a computer consultant's services," according to the indictment.
    The IT firm "earned a substantial profit margin when a consultant was assigned to a project and incurred few costs when a worker was without billable work," the government wrote.
    The scheme of only paying H-1B visas holder when work is available is called "benching," and has been cited in other, unrelated legal actions as well as in complaints filed by visa holding workers.
    When H-1B employees are assigned to work at different locations, regulations require the petitioning company to inform the government.
    As general rule, H-1B workers are supposed to be paid prevailing wages based on location. For instance, higher rates typically paid in places like New Jersey and California and lower rates in states such as Iowa.
    "A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murder is less to fear"

    Cicero Marcus Tullius

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    Re: H-1B visas used by firm to create low-cost workforce, U.S. alleges

    With the exception of the immigrant labor angle, this sounds like many temporary, gov't contract, union hall and consulting firms. It is not an uncommon business model, simply uncommon to trick immigrants into that situation, since the US is now full of folks seeking any avavilable work.
    “The reasonable man adapts himself to the world: the unreasonable one persists to adapt the world to himself.
    Therefore all progress depends on the unreasonable man.” ― George Bernard Shaw, Man and Superman

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    Re: H-1B visas used by firm to create low-cost workforce, U.S. alleges

    Quote Originally Posted by jamesrage View Post
    If the company is guilty hopefully those individuals in the company who are responsible will get the book thrown at them.

    H-1B visas used by firm to create low-cost workforce, U.S. alleges - Computerworld

    Computerworld - A Texas IT services firm has been indicted by federal authorities for using H-1B visa workers to create an inexpensive "as needed" labor force.
    I thought the thread title read "H-1B virus used by firm to create low-cost workforce, U.S. alleges" and was like 'zombies?'

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