The H-1B Legal Rights Blog posted an article in February 2009 about the two owners of the now defunct IT services firm Vision Systems. The owners pleaded guilty to mail fraud in connection with submitting a fraudulent H-1B petition, and they were sentenced to three years of probation and ordered to pay $236,250 in restitution to USCIS.
Vision Systems and its owners Viswa Mohan Mandalapu Chandra Mohan Rao Mandalapu, who are brothers, originally were indicted on multiple counts related to H-1B and green card fraud and the government had sought $7.4 million in assets to be forfeited.
The men are accused of filing H-1B petitions for workers through a shell company called Venturisoft in Iowa, although no jobs existed there. Rather, the H-1B employees were sent to other states to work. Iowa has a lower prevailing wage than such states as California, Texas and Boston.
In October 2010, the men negotiated a plea agreement with federal prosecutors, avoiding the maximum penalties, which includes imprisonment.
A copy of the plea agreement is available here.
Check the H-1B Legal Rights blog regularly to track the latest on criminal prosecutions against employers for H-1B and work visa fraud.