Indian firm L&T Technology services has agreed to pay the US authorities $9,928,000 (around Rs 81.4 crore) in order to settle fraud allegations.
LTTS or L&T Technology services is a publicly listed subsidiary of Larsen & Toubro Limited.
It provides services and personnel to companies in the US, most of which are foreign nationals.
These people are required to have proper visas in order to lawfully enter or remain in the US.
Allegations
The fraud allegations have to do with B-1 visas which do not permit visa holders to perform paid labour while in the US.
The firm is accused to have underpaid visa fees owed to the US in violation of the False Claims Act.
The issue came to light through a whistleblower complaint in the US District Court in Charleston, South Carolina.
What happened?
According to a release by the South Carolina District Attorney’s office the firm underpaid visa fees by acquiring B-1 visas, which were cheaper than the expensive H-1B visas.
Between 2014 and 2019, L&T Tech acquired inexpensive ($200-300) B-1 visas instead of the costlier ($4,000-6,000) H-1B visas for its foreign personnel.
H-1B visas permit foreign nationals to perform paid labour while in this country unlike the B-1 visa.
Aside from being costlier, H-1B visas are more difficult due to an annual cap of 65,000.
Cooperation instead of admission
Legally, the claims resolved by this settlement are allegations only.
The investigation did not determine liability and L&T Tech has denied liability while cooperating in the matter.
L&T Technology Services said that it had been cooperating with the government on this matter for over three years and is pleased to have reached a resolution.
“This settlement sends a clear message to those who seek to defraud the US government and exploit our nation’s laws, that you will be found and held accountable,” said Ronnie Martinez, Special Agent In Charge of HSI Charlotte.
Agencies involved
The HSI stands for Homeland Security Investigations which, along with the FBI, is a federal-level law enforcement and investigative agency.
It investigates transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel and finance move.
Other agencies involved in the investigation include the US Department of State’s Office of Inspector General, the US Department of Labor’s Office of Inspector General, the USCIS Nebraska Service Center Fraud Detection Unit, and the US Department of State’s Diplomatic Security Service,
