A Texas company owned by a Chinese national has been sued over allegations it ran fake child care businesses to fraudulently obtain H-1B visas.Texas Attorney General Ken Paxton has filed a lawsuit against Golden Qi Holdings LLC, accusing the company of operating and advertising non-existent child care services in order to care for foreign workers under the H-1B visa program.
Chinese citizen Yuan Yao was also named as a defendant in the case.According to the lawsuit, Yao owns and operates several Texas companies, including Golden Qi Holdings, which allegedly operates websites presenting themselves as legitimate child care providers. The advertised services did not actually exist. Examples cited in the case include the Allen Infant Care Center and the DFW ABA Center, which were supposed to serve as child care and autism treatment facilities.A visit to one of the listed locations showed no evidence of an active daycare. Journalist Sarah Gonzalez of Blaze Media reported finding an empty building and an overgrown playground at the site associated with the Allen Infant Care Center.Gonzalez also alleged that the companies filed more than 50 applications for working conditions and sponsored at least 37 workers for H-1B visas for roles such as market research analyst and supply chain analyst, which appear to be unrelated to child care work.
During her confrontation with Yao, he refused to answer detailed questions and asked Sarah to speak to his lawyer instead. “I can only tell you, everything is legal,” he said.A whistleblower claimed in the report that the operation was part of a visa scheme. That person claimed to be “selling visas” and suggested that foreign workers pay up to $20,000 for sponsorship. The whistleblower also alleged that Yao’s father had ties to the Chinese government and provided financial support.
The lawsuit also alleges that the companies received more than $100,000 in federal Paycheck Protection Program loans, which were later forgiven, but the money was not used for child care operations. Prosecutors also say many of the business addresses listed were vacant or duplicated across multiple entities.“Let this be a warning to anyone considering trying to defraud the H-1B visa program,” Attorney General Paxton said. “I will continue to fight to ensure that the H-1B program serves the interests of Americans, not Chinese citizens, and that those who abuse the program will be held accountable to the fullest extent of the law.”The case comes as Paxton’s office continues to investigate suspected H-1B visa fraud in North Texas, where authorities say some companies may be running “stealth” operations while sponsoring foreign workers.
