Infosys to settle US visa fraud case for $34M

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http://www.mysanantonio.com/news/texas/article/Infosys-to-settle-US-visa-fraud-case-for-34M-4937871.php



FILE - In this Saturday, June 15, 2013 file photo, Infosys Executive Chairman N. R. Narayana Murthy listens to shareholders during the company's 32th Annual General Meeting in Bangalore, India. Indian technology outsourcing giant Infosys announced a $34 million settlement Wednesday, Oct. 30, 2013, to end a federal investigation into allegations that company gamed immigration laws to bring thousands of lower-paid workers into the United States.

Infosys to settle US visa fraud case for $34M
By NOMAAN MERCHANT, Associated Press : October 30, 2013 : Updated: October 30, 2013 1:41pm

PLANO, Texas (AP) — Infosys announced a $34 million settlement Wednesday to end a federal investigation into allegations that the Indian technology outsourcing giant circumvented immigration laws to bring thousands of lower-paid workers into the United States.

Federal prosecutors in Texas and Infosys said the settlement would head off any criminal case.

Infosys, which operates in more than 30 countries with more than 160,000 employees, had been under investigation for using short-term B-1 visas to bring thousands of workers to the United States instead of the more expensive H1-B visa for specialized workers. The U.S. caps the number of H1-B visas issued each year, making the process highly competitive among companies looking to hire foreign employees.

Authorities accused Infosys of gaining a leg up by importing qualified workers with the B-1 visa and paying them an Indian wage, which allowed them to underbid competitors. Prosecutors said they didn't know what those workers were paid and whether they still remained in the United States, but said Infosys had agreed to changes that would bring it into compliance with American law.