ImmigrationVisa – Texas Lawsuit Targets Alleged Fake Childcare Firms for H-1B Filings
ImmigrationVisa- Texas Attorney General Ken Paxton has launched legal action against a North Texas-based company and its Chinese owner, accusing them of operating sham childcare businesses to improperly secure H-1B visas and mislead government authorities.
The lawsuit, filed in Collin County, names Golden Qi Holdings LLC and its owner Yuan Yao, a Chinese national, as defendants. State officials allege that the businesses promoted childcare and autism therapy services online despite there being little evidence the facilities were functioning operations.
Allegations Linked to H-1B Visa Applications
According to the complaint, the case emerged during a wider probe into suspected misuse of the H-1B visa system. Authorities claim the companies used the appearance of legitimate childcare centers to support visa-related filings for foreign workers.
Attorney General Paxton said the state would continue pursuing legal action against individuals or companies accused of exploiting immigration programmes for unlawful gain. He argued that employment-based visa programmes should operate within the law and serve legitimate business needs in the United States.
The H-1B visa programme allows American employers to hire foreign professionals in specialised fields such as software engineering, finance, technology and analytics. The programme is widely used by global companies, and Indian professionals make up a large share of annual recipients.
Claims of Non-Operational Childcare Facilities
Court filings state that Yao managed several Texas-linked business entities, including Golden Qi Holdings, which allegedly presented themselves online as active childcare providers in Allen, Texas.
One of the businesses mentioned in the lawsuit, Allen Infant Care Center, reportedly marketed itself as a nurturing environment for children and encouraged families to visit the facility. However, investigators claim the listed location did not appear operational.
The complaint references observations made by journalist Sara Gonzales of Blaze Media, who reportedly visited the address connected to the childcare center. The lawsuit states that she found an empty property and a neglected playground with overgrown vegetation instead of an active business.
The filing further alleges that a person familiar with the property told Gonzales the center had not been operating for a considerable period.
Multiple Visa-Related Filings Under Scrutiny
Texas authorities allege that the companies submitted petitions to US Citizenship and Immigration Services and the State Department seeking approval for workers in several professional categories.
The lawsuit claims that between 2024 and 2026, Golden Qi Holdings filed 20 Labour Condition Applications connected to positions including software engineers, app developers, financial analysts, market research analysts and business intelligence specialists.
Officials argue that the visa requests appeared inconsistent with the nature of the childcare businesses the company claimed to operate.
State authorities also contend that neither Allen Infant Care Center nor DFW ABA Center held valid childcare facility licences in Texas. The lawsuit further alleges that neither Yao nor Golden Qi Holdings possessed the required authorisations to run childcare operations within the state.
Texas Seeks Court Restrictions and Financial Penalties
The state is requesting both temporary and permanent court orders to stop the alleged business activities. Prosecutors are also seeking the removal of online advertisements connected to childcare services at the Allen location.
In addition, Texas wants the court to prevent the defendants from sponsoring future H-1B visa applications tied to the address under investigation.
The lawsuit seeks civil penalties that could reach $10,000 for each alleged violation under the Texas Deceptive Trade Practices Act. Additional penalties under the Texas Human Resources Code are also being pursued.
Immigration Debate Continues in the United States
The case arrives at a time of heightened political debate in the United States surrounding immigration enforcement, foreign influence and oversight of employment-based visa programmes.
Texas officials under Paxton have increasingly taken aggressive legal positions on immigration and national security matters. The lawsuit is expected to attract attention among international professionals and companies that rely on the H-1B visa system, particularly in countries such as India where visa policy developments are closely monitored.