Indian-Origin Founders of U.S. Company Charged in H-1B Visa Fraud Scheme

In a shocking case of visa fraud, three Indian-origin businessmen in the U.S. have pleaded guilty to orchestrating a scheme that exploited the H-1B visa program, defrauding both the U.S. immigration system and skilled foreign workers who were promised jobs that never existed. Kishore Dattapuram, 55, co-founder of the staffing company Nanosemantics Inc., pleaded guilty this week in federal court in California to conspiracy and H-1B visa fraud charges. His partners, Kumar Aswapathi, 55, and Santosh Giri, 48, have also admitted to participating in the illegal activities that allowed Nanosemantics to unfairly secure visas without actual job placements.

How the Fraud Scheme Worked

Dattapuram, along with Aswapathi and Giri, orchestrated an elaborate scheme that used fraudulent H-1B visa applications to sidestep U.S. immigration protocols. According to the U.S. Attorney’s Office for the Northern District of California, Nanosemantics Inc., headquartered in San Jose, submitted H-1B petitions falsely claiming that foreign workers had secured positions at end-client companies. However, these jobs were fictitious—companies were paid to falsely confirm employment for foreign workers. The objective? To speed up visa approvals so Nanosemantics could deploy workers at actual jobs as soon as positions became available, gaining a significant competitive edge in the tech staffing market.

The defendants reportedly placed foreign workers on “bench” status, holding H-1B without actual job roles in place. By bypassing the legal requirement to have real jobs before obtaining visas, Nanosemantics created a pool of readily available workers—an approach that not only gave the company an edge over competitors but exploited workers whose jobs were contingent on the availability of actual placements.

Impact on the U.S. Immigration System and Workers

The implications of this scheme extend beyond Nanosemantics. The H-1B visa program, which is designed to allow U.S. companies to bring in highly skilled foreign workers, was misused in this case, potentially undermining the credibility of the program itself. The H-1B visa process requires that companies file truthful Form I-129 petitions, detailing the specific job, wage, and duration of the position for which the foreign worker is hired. By submitting fraudulent information, Nanosemantics undermined a system built to protect both the foreign worker and the U.S. labor market.

Consequences and Sentencing

All three defendants face significant penalties for their actions. Dattapuram and Giri, who worked closely with Nanosemantics through their respective businesses, are scheduled for sentencing on February 24, 2025. Aswapathi, who pleaded guilty to all charges in 2020, faces a status hearing on November 25, 2024. Each man faces up to 10 years in prison and a $250,000 fine for each count of visa fraud, with an additional maximum of five years for conspiracy charges.

The Broader Implications for the H-1B Visa Program

This case serves as a stark reminder of the need for oversight and transparency in the H-1B visa program. Intended to fill skill gaps in the U.S. workforce, the program has increasingly come under scrutiny, particularly when cases of fraud or exploitation surface. Cases like Nanosemantics’ not only harm foreign workers who place their trust in employers but also jeopardize the integrity of a program essential to innovation and competitiveness in the U.S.