The Trump administration rocked the local tech world yesterday when Vice President JD Vance accused Microsoft of fraud and suspended the company from a program that helps transition foreign workers on H-1B visas to permanent U.S. residency.
Microsoft says the administration has misinterpreted its use of the program. KUOW’s Kim Malcolm spoke to Jessica Fu, who reported the story for The Seattle Times.
This interview has been edited for clarity.
Kim Malcolm: For those not familiar with these H-1B visas, can you explain who typically qualifies for them and who uses them?
Jessica Fu: Typically, it is people with advanced degrees and with highly specialized knowledge that qualify for H-1B status. As a result, a lot of tech companies and people who graduated with degrees in STEM [Science, Technology, Engineering, and Math] are the beneficiaries of the program.
A lot of Seattle-area tech…
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.