Infosys to be slapped a fine of USD 35 million

The US Justice department is expected to resolve tomorrow a visa fraud investigation against Infosys Ltd., according to a media report.

The company is expected to be slapped a fine of USD 35 million -- said to be the largest immigration fine ever -- by the Justice Department for allegedly violating visa norms, the Wall Street Journal said.

In a report, quoting unnamed officials of the Department of Justice, the newspaper said the fine is expected to be announced on Wednesday. This is a culmination of the joint investigation carried out by the Department of Justice and the Department of Homeland Security.

Infosys itself had said earlier this month that it has set aside USD 35 million for a potential settlement tied to the probe and that it was "engaged in discussions” to resolve the matter.In a media advisory, the Office of US Attorney John M. Bales for the Eastern District of Texas said DHS and the State Department would on Wednesday "announce the settlement of systemic visa fraud and immigration abuse allegations with an international corporation."  

"The probe comes amid a debate over whether foreign workers, particularly in the software sector, are displacing qualified Americans because they are cheaper. "The investigation spurred the government to say it intends to tighten regulations that critics say allow employers to abuse the immigration system,” The Wall Street Journal said.

"This complaint and large settlement should be a wake-up call to all employers that the government is serious about enforcing the H-1B visa regulations," Stephen Yale-Loehr, a Cornell University immigration-law professor, was quoted as saying by the daily.