Texas Attorney General Ken Paxton has filed a lawsuit against a North Texas company and its owner, alleging they improperly operated fraudulent businesses to obtain H-1B visas.
According to the lawsuit, Golden Qi Holdings LLC and its owner, Yuan Yao, a citizen of the People’s Republic of China, are accused of advertising nonexistent childcare and therapy businesses to sponsor foreign workers through the federal visa program.
The Office of the Attorney General said the lawsuit is part of a broader investigation into suspected abuse and fraud involving H-1B visas.
State officials allege Yao owns and manages several Texas-based entities, including Golden Qi Holdings, that promoted childcare-related services online despite not operating legitimate facilities. Among the businesses named in the allegations are Allen Infant Care Center and DFW ABA Center.
The attorney general’s office cited reporting by Blaze Media’s Sara Gonzales, who visited the address listed for Allen Infant Care Center and reportedly found an empty building and an overgrown playground instead of an operating childcare facility.
According to the lawsuit, an individual familiar with the property claimed the center had not operated for an extended period and alleged that Yao “sells visas.” The lawsuit also alleges that Yao received federal and state childcare and business subsidies but did not use the funding for childcare operations.
State officials further allege that several businesses connected to Yao listed the same vacant address, 600 S. Jupiter Road in Allen, and that the advertised childcare facilities lacked proper licensing.
“Let this be a warning to anyone considering trying to scam the H-1B visa program. I will continue fighting to ensure that the H-1B program serves the interests of Americans, not Chinese nationals, and that those who abuse the program are held accountable to the fullest extent of the law,” Paxton said in a statement. “My office will continue to work to stop any foreign national from entering this country unlawfully.”
The lawsuit seeks to stop the alleged violations under the Texas Deceptive Trade Practices Act and the Texas Human Resources Code. The attorney general’s office is also seeking civil penalties, including up to $10,000 for each alleged violation of the Deceptive Trade Practices Act.
Last month, Paxton announced that his investigation into alleged H-1B visa fraud had been expanded to nearly 30 businesses across North Texas, The Dallas Express reported.
