Texas Attorney General Ken Paxton accused a North Texas company of opening phony childcare centers to obtain fraudulent H-1B visas for foreign nationals.
In a new lawsuit filed this week in Collin County, Paxton alleged Yuan Yao and his Allen-based company, Golden Qi Holdings, filed 20 applications to hire foreign workers in positions like software development and business intelligence, then sold the visas to women in China.
Earnings helped fund Yao’s lavish lifestyle, according to the suit, including luxury cars, at least six cellphones and several Dallas-area businesses.
Yao did not respond to an email Wednesday seeking comment. A phone number for Golden Qi was disconnected.
Paxton is seeking up to $10,000 for each violation.
“Let this be a warning to anyone considering trying to scam the H-1B visa program,” the attorney general said in a statement. “I will continue fighting to ensure…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.