I am not surprised that H1B visas are being used to undercut wages of citizens and green card holders, but I am shocked that we are seeing raids and indictments on employers who engage in this practice.

Even more surprising is the fact that the prosecutors appear to be unloading some big guns against these folks:

The arrests were carried out by federal, state and local agents working in Iowa, California, Massachusetts, Texas, Pennsylvania, Kentucky and New Jersey. The government’s action “is the result of an extensive, ongoing investigation into suspected H-1B visa fraud, mail fraud and conspiracy,” said Matthew Whitaker, the U.S. attorney for the Southern District of Iowa, in a statement. The investigation was dubbed Operation Pacific Vision.

(emphasis mine)

So we are seeing both arrests and felony indictments.

It appears that the investigation centers on the borker (temp firm) Vision Systems, who placed people in high cost areas like New Jersey, but used the prevailing wage of its headquarters in Iowa.

It’s a start. Better would be an H1B application fee high enough that it would remove the economic incentive.