Texas Attorney General Ken Paxton accused a North Texas company of opening phony childcare centers to obtain fraudulent H-1B visas for foreign nationals.
In a new lawsuit filed this week in Collin County, Paxton alleged Yuan Yao and his Allen-based company, Golden Qi Holdings, filed 20 applications to hire foreign workers in positions like software development and business intelligence, then sold the visas to women in China.
Earnings helped fund Yao’s lavish lifestyle, according to the suit, including luxury cars, at least six cellphones and several Dallas-area businesses.
Yao did not respond to an email Wednesday seeking comment. A phone number for Golden Qi was disconnected.
Paxton is seeking up to $10,000 for each violation.
“Let this be a warning to anyone considering trying to scam the H-1B visa program,” the attorney general said in a statement. “I will continue fighting to ensure that the H-1B program serves the interests of Americans, not Chinese nationals, and that those who abuse the program are held accountable to the fullest extent of the law.”
Paxton’s lawsuit named social media influencer Sara Gonzales, who in January posted a video on X titled “I Exposed a MAJOR H-1B Visa Scam in Texas.” In her report, she visited offices and knocked on doors asking for visa and business details.
Gonzales visited Allen Infant Care Center, which Paxton named in the lawsuit along with DFW ABA Center. Neither center answered phone calls Wednesday.
The H-1B program allows companies to recruit and hire foreign workers in specialized fields such as information technology and medicine. The program has in recent months become a target among conservatives. Texas Gov. Greg Abbott earlier this year directed public universities and state agencies to freeze new H-1B visa applications until May 2027 so lawmakers can add “guardrails” to the program.
The issue emerged as a flashpoint in Frisco, where the Indian American population has soared in recent decades, from 2% of the city’s population in 2000 to one-third in 2026. Influencers descended on the area, reporting that they found vacant “ghost offices” used to create phony businesses to sponsor foreign workers.
Indian applicants accounted for 71% of approved applications in the fiscal year 2024, according to federal data. About 12% went to applicants from China.
Paxton, who is challenging incumbent U.S. Senator John Cornyn, has filed a flurry of lawsuits and investigations in recent months that align with the Trump administration’s priorities. Last year, the attorney general announced investigations into cereal and candy makers over artificial food dye.