Bangalore-based analytics company Mu Sigma has agreed for an out-of-court settlement with the US Immigration and Customs Enforcement in a case of alleged visa fraud. The amount paid by the company is $2.5 million, as per an Economic Times report. The company however claims that it contested all charges, but went for an out of court settlement since the cost of fighting the case legally would have been more than the fine imposed
The allegation against Mu Sigma is that the company would employ people on B1 visitor visa and pay them much lower salaries in India than they would have been entitled if they were treated as H1B visa holders and paid the US salaries. The US Immigration and Customs Enforcement appears to have been tipped off by one such employee who was sent on a B1 visa.
A B1 visa is for those visiting the US for business purposes, but plan to go back to their home country afterward.
An executive from Mu Sigma told ET that the situation it faced is something practically all IT companies face in the US.
The details of the case have appeared on the website of the US Immigration and Customs.
It is also learnt that Mu Sigma had a practice where if an employee sent on H1B visa to the US jumps job, then he or she will have to reimburse $10,000 to the company being the cost of procuring the H1B visa.
As stated by the company, this has been an issue faced by almost all IT companies over the years.