“L&T Technology Services, an Indian firm and publicly listed subsidiary of Larsen & Toubro Limited, has reached a settlement with US authorities to pay $9,928,000 (approx. Rs 81.4 crore) in order to resolve fraud allegations.
LTTS provides services and personnel to US-based companies, many of whom employ foreign nationals who must possess proper visas to lawfully enter or stay in the US.”
Allegations
“The fraud allegations against the firm pertain to the misuse of B-1 visas, which do not authorize visa holders to engage in paid labor while in the US.
The firm is accused of underpaying visa fees owed to the US, thereby violating the False Claims Act.
These allegations came to light through a whistleblower complaint filed in the US District Court in Charleston, South Carolina.”
What happened?
As per a statement from the South Carolina District Attorney’s office, the firm is alleged to have underpaid visa fees by obtaining B-1 visas, which were less expensive compared to the pricier H-1B visas.
It is claimed that between 2014 and 2019, L&T Technology Services acquired lower-cost ($200-300) B-1 visas instead of the higher-cost ($4,000-6,000) H-1B visas for its foreign personnel.
In contrast to the B-1 visa, H-1B visas allow foreign nationals to engage in paid employment while in the US.
However, H-1B visas are not only more expensive but also more challenging to obtain due to an annual cap of 65,000.
Cooperation instead of admission
From a legal standpoint, the claims addressed in this settlement remain as allegations only, as no determination of liability has been made.
L&T Technology Services has denied liability while actively cooperating with the investigation.
The company has stated that it has been engaged in cooperative efforts with the government in this matter for over three years and is satisfied to have reached a resolution.
Ronnie Martinez, the Special Agent In Charge of HSI Charlotte, stated, “This settlement serves as a clear message to those who attempt to defraud the US government and exploit our nation’s laws, that you will be identified and held responsible.”
Agencies involved
HSI, short for Homeland Security Investigations, is a federal law enforcement and investigative agency that works in conjunction with the FBI.
It focuses on investigating transnational crime and threats, particularly criminal organizations that exploit the global infrastructure facilitating international trade, travel, and finance.
The investigation involved multiple agencies, including the Office of Inspector General within the US Department of State, the Office of Inspector General within the US Department of Labor, the Fraud Detection Unit at the USCIS Nebraska Service Center, and the Diplomatic Security Service within the US Department of State.
