Infosys faces $35 million fine for visa fraud


Washington, Oct 29 (PTI): The US Justice department is expected to resolve tomorrow a visa fraud investigation against Infosys Ltd., according to a media report.

The company is expected to be slapped a fine of USD 35 million -- said to be the largest immigration fine ever -- by the Justice Department for allegedly violating visa norms, the Wall Street Journal said.

In a report, quoting unnamed officials of the Department of Justice, the newspaper said the fine is expected to be announced on Wednesday.

This is a culmination of the joint investigation carried out by the Department of Justice and the Department of Homeland Security.

Infosys itself had said earlier this month that it has set aside USD 35 million for a potential settlement tied to the probe and that it was "engaged in discussions” to resolve the matter.In a media advisory, the Office of US Attorney John M. Bales for the Eastern District of Texas said DHS and the State Department would on Wednesday "announce the settlement of systemic visa fraud and immigration abuse allegations with an international corporation."    

"The probe comes amid a debate over whether foreign workers, particularly in the software sector, are displacing qualified Americans because they are cheaper.

"The investigation spurred the government to say it intends to tighten regulations that critics say allow employers to abuse the immigration system,” The Wall Street Journal said.

"This complaint and large settlement should be a wake-up call to all employers that the government is serious about enforcing the H-1B visa regulations," Stephen Yale-Loehr, a Cornell University immigration-law professor, was quoted as saying by the daily.

  

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Comment on this article

  • Flavian, Mangalore/Kuwait

    Wed, Oct 30 2013



    For Justice, Abu Dhabi/Ubbar

    You are not an ordinary commenter.

    Well done.

    Commenting without knowledge is..............

    During my younger days in M'lore, if some one yaps too much (Bandal) we used to say .... train moving without rail tracks...

    DisAgree Agree [2] Reply Report Abuse

  • Sujith Rao , udupi/new york

    Wed, Oct 30 2013

    Infosys is basically a labour (Computer Coolies) contracting company, managed by US educated Indians. The greed to make extra dollars drove these guys to commit visa fraud, false declaration of business activities etc but were caught. Anticipating such an eventuality, enough money was set aside to pay the fines

    The bottom line is US govt does not want to punish these guys due to the business ties infosys has with American companies. So they let them off with a small fine and warning. As someone earlier pointed out, intervention by indian govt would have resulted in a kick in the asz, a huge loss to indian investors as the company would probably close down.

    DisAgree Agree [1] Reply Report Abuse

  • leslie fernandes, Udupi

    Wed, Oct 30 2013

    Corporate flaws are often shared across and nullified by such massive looking fines and penalties...
    When an individual indulges in similar sort of situations it is hard to even come out of jail for one moment...
    What are we reading and what actually is happening...???
    Suchhaayi chup nahin sakti magar sachhon ki band baja degi.....

    DisAgree Agree [1] Reply Report Abuse

  • Vilasini Rao, Udupi/manipal

    Tue, Oct 29 2013

    Vodafone irregularities were committed by Indian utives working for Vodafone with active participation of some Indian govt officials. In the case of Infosys, the fraud is of different nature.

    Detonating a atom bomb that led to economic boycott by west is not an event to be proud of. Israel has 100s of them, and doesn't make a show of its power. What should be important to India is root out corruption and fraud.

    DisAgree [2] Agree [8] Reply Report Abuse

  • Kushal Shetty, Udupi/Dubai

    Tue, Oct 29 2013

    When govt. of India fined Vodaphone for financial irregularities, UK govt. interfered, though it is private firm and ultimately govt. of India had to reconsider its decision. But no one question US govt. and govt. of India will never interfere in such cases.
    This is the difference between India and rest of the world. We have yet to find out our self esteem except once when Vajpayee govt. detonated nuclear bomb they didn't care about US threat and ultimately USA itself bow down.

    DisAgree [5] Agree [6] Reply Report Abuse

  • Nithyananda Acharya, Udupi

    Tue, Oct 29 2013

    Easier said than done. Any interference by Indian Govt may cause blacklisting and this may lead to the bankruptcy of Infosys within a year. What India should do is penalize the Infosys management so that they do not indulge in fraudulent activities.

    DisAgree [1] Agree [15] Reply Report Abuse

  • FLAVIAN DSOUZA, CHIK/BANAGLORE

    Tue, Oct 29 2013

    Infosys is cash rich by a billion dollar so money is not an issue but large clients in the US will closely review every contract and agreements. Damage control will take another 100 million in the long run . short cuts you also pay in the long run !!

    DisAgree Agree [6] Reply Report Abuse

  • maxi, kinnigoly/mumbai

    Tue, Oct 29 2013

    infosys mastered the art of BODY SHOPPING with WE ARE CHEAPER AS THEIR USP.WHAT ELSE ,HAVE V EVER PRODUCED SINGLE SILICON CHIP WAFER IN THIS COUNTRY ? SEMI CONDUCTORS ARE HEART OF I.T. AND WE STILL BIG ZERO IN IT.

    DisAgree [3] Agree [9] Reply Report Abuse

  • Ranjith, udupi / USA

    Tue, Oct 29 2013

    Indians in India are unfortunatley only good for one thing: making black money, and making scams. When it comes to any technological invention Indians are a big ZERO. No wonder, IIT grads and other intelligent BTech grads still prefer to work and settle in USA. Indians in USA are the most successful minority be it career wise or in business and these guys don't want to come back to india (brain drain). Honestly, what has Infosys, Wipro, HCL and other IT manpower giants invented...nothing! These companies don't even invest a major portion of their profits into R&D. They only copy technologies from west and replicate it with cheap indian labor...and follow the same principle when body shopping to US. Now Infosys has to pay a fine for not reporting correctly to IRS on its indian workforce in US...

    DisAgree [1] Agree [15] Reply Report Abuse

  • Blaan Mendonca, USA

    Wed, Oct 30 2013

    Indian employers pay their Indian immigrant employees half of the pay in cash under the table without reporting it to Internal Revenue Service (IRS) and rest of the half by check which is reported to the Internal Revenue Service (IRS) for tax filing. The employer and employee do not pay income tax for half of the earned income and profits. There are so many illegal Indians who come here either on a visit visa or illegally and do not go back, they stay illegally and work in Indian stores and beauty saloons illegally and earn in dollars but do not pay income tax and later fight for immigrant status to become US citizens without any documents.

    DisAgree [1] Agree Reply Report Abuse

  • Mark, Udyavara

    Tue, Oct 29 2013

    No need to feel sad. If fraud is proven, then fine is correct.

    Unfortunately, it is in the US. No respite. If it was India, would not have figured at all cos it's peanut of a fraud comparing to the mega frauds we have!

    DisAgree [1] Agree [14] Reply Report Abuse

  • Vincent Rodrigues, Katapadi/Bangalore

    Tue, Oct 29 2013

    This is very unfortunate.Hope they will come out clean and successfull.All the best.Thanq.

    DisAgree [9] Agree [6] Reply Report Abuse

  • Dinesh Poojary, Kundapura/Bengaluru

    Tue, Oct 29 2013

    $35 Million is huge amount.

    Already US is irritated with IT outsource. They are waiting for this kind of opportunity to show their wrath.

    DisAgree [11] Agree [12] Reply Report Abuse

  • Flavian, Mangalore/Kuwait

    Tue, Oct 29 2013



    Do they have enough reserves ?

    How the Company will sustain such an heavy blow ?

    DisAgree [9] Agree [4] Reply Report Abuse

  • Matthew, Nitte

    Tue, Oct 29 2013

    Flavian, Infosys generates close to 7 billion $/yr in revenues. 35million $ is chump change for them. Besides, to call this a "fine" is shoddy journalism at best. US DHS and USCIS are yet to issue a statement. And Infosys has mentioned they have set aside the funds for possible "settlement" - which is not the same as "fine".

    fyi, last week, the world's largest investment bank JP Morgan Chase "settled" with SEC and other US agencies for a massive 13 billion $. Companies settle to avoid lengthy legal tussle with government agencies.

    DisAgree Agree [4] Reply Report Abuse

  • For Justice, Abu Dhabi / Ubar

    Tue, Oct 29 2013

    Beyond my little knowledge to comment.

    DisAgree [1] Agree [13] Reply Report Abuse

  • Anand, karkala

    Tue, Oct 29 2013

    Everybody is welcome in this forum to comment. USD 35 Million has already been kept aside and informed to US Justice Department.

    DisAgree Agree [14] Reply Report Abuse

  • R.Bhandarkar, M'lore

    Tue, Oct 29 2013

    Budle...Justicegaad athe?
    Budle...Daalah Mande Beccha Malpodji...

    DisAgree [2] Agree [12] Reply Report Abuse

  • Dinesh Poojary, Kundapura/Bengaluru

    Tue, Oct 29 2013

    You can comment only in politics, especially for Modi :-)

    DisAgree [3] Agree [4] Reply Report Abuse

  • For Justice, Abu Dhabi / Ubar

    Wed, Oct 30 2013

    Don't be silly man! Check all previous articles since about a year & you will find it my comments in almost all issues,but this INFOSYS issue I don't understand well,so i said so.

    Commenting without knowledge is just like as driving without stearing.

    Grow up..

    DisAgree Agree [5] Reply Report Abuse


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