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A major H-1B lottery scam has surfaced in which multiple companies submitted multiple applications for the same individuals rigging the system of getting American visas. Kandi Srinivasa Reddy, an Indian-American businessman, has been named behind the fraud. Interestingly, Reddy was a candidate of the Congress, now the ruling party in Telangana in the recent local election -- and lost.
An investigation by Bloomberg has unearthed the scam going on for some years and now many other firms are doing the same.
10 things you need to know about Reddy and H-1B scam
- The scam is based on a process called 'multiple registrations'. If one individual submits many applications under different company names, chances of getting selected in the lottery that takes place every April increases.
- Srinivasa Reddy controlled several companies which had shared addresses -- like Cloud Big Data Technologies LLC, Machine Learning Technologies LLC through which he rigged the system and got hundreds of H-1B visas.
- Those who applied for H-1B visa through Reddy's companies were assured of the visa. The system created disadvantage for companies that follow rules.
- Reddy created what Bloomberg called "the Amazon of staffing".
- A Telugu NRI, Reddy studied masters in the US and worked as a tech consultant.
- After Reddy got a worker a visa, it used to take 20 per cent to 30 per cent of the worker's pay -- which is around $15,000 or more each year.
- In the 2020 lottery, Reddy's Cloud Big Data submitted some 288 names. At the same time, other companies under Reddy submitted the same names. His companies in 2020 entered the lottery more than 3,000 times.
- Reddy told Bloomberg that he is just a registered agent for the companies and has no involvement in them but official documents say otherwise. In his election data, he said he is the owner of all the staffing companies.
- Reddy has a foundation to help farmers in his hometown in India. He also has his own television and online news operation.
- Reddy told TOI that there is nothing illegal in what he did. "When multiple visa entries are filed, the choice is up to the employees to choose which company they would like. From 20924, changes were made, and passport numbers need to be entered. Now, if multiple entries are filled, it will reflect everywhere," he said.
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