US Govt probes Infosys
By Bala Shah

The US had set up the H-1B visa program to hire on a short term basis highly skilled workers not available in America. While most Indian tech firms win contracts based on their quality computing skills and competitive costs and treat their H1B techies well, there are others which exploit Indians at every opportunity.  There has been some misuse of the B-1 Visa as well.  The US Govt has announced huge fines for some such firms.

On Feb 26, 2011, I had written about how a Principal at Infosys Enterprise Solutions, Jack Palmer, was accusing Infosys of systematic Visa and tax fraud (Article republished below)

Based on Jack’s allegations, Infosys is now under US Government investigation. Itbusinessedge is reporting

“
If Infosys Technologies was sweating bullets before, now it must be sweating cannon shells. According to Kenny Mendelsohn, the Alabama attorney who filed the lawsuit against Infosys alleging visa and tax fraud, Infosys is now under investigation by U.S. federal authorities.

Mendelsohn told me that his client, Jay Palmer, the Infosys employee who blew the whistle on the Indian outsourcing services provider, is cooperating with federal authorities as part of the investigation. Mendelsohn said he was not at liberty to disclose which federal authorities are conducting the investigation, or how they became involved in the case. He did confirm that Infosys is aware of the federal investigation.

Mendelsohn noted that after it became aware that Palmer was cooperating with federal investigators, Infosys demanded that Palmer surrender his laptop, and threatened to fire him if he didn’t comply:

……
“

(Techgoss had published the following on Feb 26, 2011)

Infosys accused of Visa fraud
By Bala Shah

The US had set up the H-1B visa program to hire on a short term basis highly skilled workers not available in America. While most Indian tech firms win contracts based on their quality computing skills and competitive costs and treat their H1B techies well, there are others which exploit Indians at every opportunity.  The US Govt has announced huge fines for some such firms.

This misuse by some Indian body shops of the H1B Visas not only harms Americans, but it has a negative affect on skilled Indian techies as well. Many Indian techies sent to USA and Europe by India based IT firms were given only $40,000 a year even as they were being billed out on $80-100,000 per annum.  Sadly, some Indian techies and BPO workers working for smaller companies were treated no better than cattle. Some Gurgaon based BPO workers even had their passports taken away once they reached USA.  For short term profits, a handful of Indian mafia managers sacrificed a long term healthy working relationship with some Americans and Indians as well.

What about large IT giants like Infosys which pay their staff well but may be taking advantage of some loopholes in the American Visa system? American Courthousenews is reporting on how an American manager has accused Infosys of systematic Visa fraud

“
Infosys, which employs more than 15,000 foreign workers in the United States, systematically commits visa fraud and tax fraud to increase profits, and threatened and retaliated against a "principal consultant" who called them on it, the man claims in Lowndes County Court..

In his complaint, Jack Palmer says he worked for Infosys "as a Principal - Enterprise Solutions" since August 2008.

After the federal government restricted the H-1B program, in 2009, Palmer says, he was sent to Bangalore, India, for "planning meetings."

"During one of the meetings, Infosys management discussed the need to, and ways to, 'creatively' get around the H-1B limitations and process and to work the system in order to increase profits and the value of Infosys' stock. The decision was made by management to start using the B-1 visa program to get around the H-1B restrictions.  Individuals on B-1 visas are prohibited by law from working in full time jobs in the United States.

"During the course of his employment, plaintiff learned the Infosys was sending lower level and unskilled foreigners to the United States to work in full-time positions at Infosys' customer sites in direct violation of immigration laws. Plaintiff also learned that Infosys was paying these employees in India for full-time work in the United States without withholding federal or state income taxes. Plaintiff also learned that Infosys overbilled its customers for the labor costs of these employees.
“

Jack Palmer complained to the Infosys Corporate Counsel and even the Infosys ‘Whistleblower Team’ but he was stone walled.  Palmer alleges that attempts were made to break him down by making him work 70 hours a week, and he was denied bonuses and even reimbursements for costs incurred while doing Infosys work.

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