Infosys Corp. to Settle Fraud Claims for $34M

Infosys Corporation has agreed to pay $34 million to settle allegations of systematic visa fraud and abuse of immigration processes, the U.S. Attorney’s Office announced earlier this week.  The $34 million payment made by Infosys, an Indian company involved in consulting, technology, and outsourcing, represents the largest payment ever levied in an immigration case.

Infosys brings foreign nationals into the United States in order to perform work and fulfill contracts with its customers under two visa classification programs, H-1B and B-1. The government alleged that Infosys knowingly circumvented the requirements, limitations and governmental oversight of the H-1B visa program by unlawfully using B-1 visa holders to perform skilled labor that would otherwise be performed by United States citizens or require legitimate H-1B visa holders.  The government also alleged that Infosys did so in order to increase profits, minimize costs of securing visas, increase flexibility of employee movement, obtain an unfair advantage over competitors and avoid tax liabilities.

The settlement agreement also requires additional auditing for I-9 forms; a reporting requirement for B-1 usage; an agreement to continue to use only detailed invitation letters and the continued use of corporate disciplinary processes for employees that violate the immigration laws of the United States.

The lawsuit was originally filed by Jack Palmer, a former Infosys employee in America, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Palmer’s case was dismissed last year by a federal judge but spurred federal investigation, and he could receive $5 million to $8 million as his share of this settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.