Infosys to settle US visa fraud case for $34M

PLANO, Texas — Infosys disclosed a $34 million settlement Wednesday to end a federal investigation into allegations that the Indian technology outsourcing giant circumvented immigration laws to bring thousands of lower-paid workers into the United States. Federal prosecutors and Infosys said the settlement would head off any criminal case.

Infosys, which operates in more than 30 countries with more than 160,000 employees, had been under investigation for using short-term B-1 visas to bring thousands of workers to the United States instead of the more expensive H1-B visa for specialized workers. The United States caps the number of H1-B visas issued each year.

An Infosys consultant flagged what he said was an illegal practice and contacted authorities. The whistle-blower stands to collect millions from the settlement under the False Claims Act, according to US Attorney John M. Bales.