Viral Hunt Turns H-1B Lawsuit: 30 Texas Firms Targeted

Another H-1B storm has hit Texas, and this time the state’s top law officer is taking action against the system himself.

Texas Attorney General Ken Paxton announced that his office has issued Civil Investigative Demands to nearly 30 North Texas businesses over alleged H-1B visa fraud. In a post on X on April 30, Paxton said he was taking legal action as part of his probe into companies suspected of abusing the system.

He also thanked Sara Gonzalez, a Blaze TV reporter, who had gone viral for reaching out to “ghost offices” in Texas. In many cases, it was found that Telugu techies were behind these consultancies and came under fire for not producing LCA documents when Gonzalez asked.

The 30 North Texas businesses named in the lawsuit are alleged to have committed a similar crime, running fake or empty locations used to sponsor foreign workers without real operations. The CID orders seek employee records, financial documents, details on products or services, and internal communications tied to company operations.

The move has already stirred debate online. Under Paxton’s X post, many users supported the move, saying fraud in the visa system hurts American workers.

It also sparked criticism as immigration attorney Emily Neumann argued that not every third-party placement or consulting setup is illegal. While the “ghost offices” claim makes sense for fake operations, there is a fear that all third-party placements are being wrongfully dragged into the lawsuit as fraud.

Paxton first launched a broader H-1B abuse probe earlier in 2026, starting with three North Texas firms. No charges have been filed yet, but the investigation could lead to penalties or federal referrals if wrongdoing is found in this much larger push.