Department of Homeland Security Uncovers Fraud in Optional Practical Training Program
The Department of Homeland Security (DHS), under the leadership of Mark Wayne Mullin, is revealing significant fraud within the Optional Practical Training (OPT) program, which enables white-collar immigrants to take up jobs often desired by U.S. graduates.
“We’ve identified over 10,000 international students working for suspicious employers, but this probably represents just a small portion,” stated Todd Lyons, acting director of U.S. Immigration and Customs Enforcement (ICE) managing the OPT program. He didn’t entertain questions at a press conference on Tuesday, mentioning, “This is merely the tip of the iceberg.”
Next year, the program is set to provide more than 400,000 work permits to foreign students and graduates from American universities. This expansion occurs despite the fact that Congress hasn’t discussed or approved the corporate endowments established under President George W. Bush.
Mark Krikorian from the Center for Immigration Studies remarked, “This is an encouraging development.” However, he expressed uncertainty about the agency’s motivations. “Is this a step towards eliminating OPT programs or merely a tactic to highlight the prevalent fraud?” he pondered, hoping for the latter yet fearing the former.
The sizable visa program has drawn considerable controversy, particularly among young Americans, as the number of white-collar jobs is declining in an era marked by both increased immigrant employment and the rise of artificial intelligence.
The OPT program often doesn’t get the attention it deserves in mainstream media, despite being perceived as a covert channel facilitating white-collar immigrants into crucial job opportunities that skilled American professionals need.
This program, along with the Curriculum Practical Training Program for graduates, allows qualified individuals with tech-related degrees to work in the U.S. for up to five years without contributing to Social Security taxes. Many extend their working period to gain experience and bolster their resumes before applying for the H-1B program, which serves as a pathway to green cards and citizenship.
Consequently, more than a million workers under CPT, OPT, and H-1B statuses endure exploitation by foreign companies. This influx of lower-cost labor has adversely impacted numerous American firms, pushing millions of graduates out of jobs and hindering their middle-class prospects.
As Rosemary Jenks, co-founder of the Immigrant Responsibility Project, noted, “With OPT, foreign students effectively replace American workers.” She highlighted how Fortune 500 companies benefit by reducing labor costs, thereby boosting profitability and increasing stock prices.
Several tech workers told outlets that OPT is often misused to favor foreign hires over Americans, with foreign employers allegedly offering kickbacks for hiring from within their ethnic communities. This practice has resulted in a growing percentage of management roles at large companies being occupied by individuals from certain ethnic groups.
Moreover, entrepreneurial immigrants, especially from India, exploit the program through various scams, like providing false payroll records to college dropouts who often work in cash-intensive positions at foreign businesses. Such fraudulent practices are reportedly managed by officials from the Indian embassy.
During two recent ICE inspections, Lyons described multiple irregularities found at businesses employing OPT workers. “Over the last year, we’ve significantly heightened our scrutiny of OPT, uncovering widespread fraud across the nation,” he explained, noting the visits to various states.
They encountered empty buildings, locked doors, and addresses tied to large numbers of international students with no actual operations occurring. Many employers at these listed locations shared the same address, often leading to identification of residential areas claimed as workplaces.
Looming economic concerns were evident, with many so-called employers exhibiting warning signs, including tax liens and civil lawsuits. The absence of basic employment records for international students further complicates oversight.
What stood out during the investigations were “phantom employees,” international students who obtained work authorization through OPT but weren’t seen at their claimed job sites. This issue has gone largely unnoticed by reporters focused on other immigration matters.
John Condon, acting executive associate director of ICE’s Homeland Security Investigations, noted visits to multiple OPT employment sites in North Texas yielded surprising findings. “We discovered networks of employers running similar sites and job postings yet claiming no ties,” he said.
He described how some OPT employers seemed to exploit loopholes, setting up multiple shell companies to minimize taxes while misrepresenting their operations.
In Houston, a reported OPT employer faced accusations of engaging in fraudulent practices, charging funds from students under the table for visa maintenance, while none of the purported employees could be found.
At a New York location with claims of many international students residing there, the alleged employer denied any affiliation with the company, despite contrary records.
It’s worth noting that corporate influences often downplay media scrutiny of these issues, helping to keep the hidden practices that marginalize American college graduates largely under wraps.
During President Trump’s first term, there was a reduction in the program as some fraudulent employers were shut down. However, under President Biden, the focus on oversight diminished as the program expanded further.
Amid calls for reform during Trump’s presidency, Joe Edlow, leading U.S. Citizenship and Immigration Services, remarked concerning wage concerns, emphasizing that wages are indeed plummeting.
Lyons elaborated, noting that when OPT originated under the Bush administration, it was expected to involve only a handful of foreign students, but it has since ballooned into an extensive guest worker scheme courtesy of unchecked growth and rising fraud.
“Kudos to Commissioner Mullin for shedding light on these issues and enabling further investigation,” Jenks noted, highlighting that this program could be terminated through executive actions, just as it was expanded.
