In a case that has implications for companies that utilize US work and business visas, the US District Court for the District of New Jersey recently ruled on two theories under the False Claims Act (FCA) related to the use of such visas. The court's rejection of one of the theories marks the first time a court has ruled on a direct FCA claim alleging misrepresentations in connection with visa applications.
The case, Jean-Claude Franchitti v. Cognizant Technology Solutions Corporation et al., involved allegations that Cognizant, a technology services provider that utilizes three primary visa types'B-1, H-1B, and L-1'for its foreign employees to travel to the United States, violated the FCA by submitting false documents in support of visa applications. The plaintiff in the case, a former assistant vice president for Cognizant, alleged in a qui tam complaint that the company routinely filed applications for H-1B visas for highly skilled workers that included falsified job descriptions and invitation letters so that the company could have a group of 'travel ready' workers who could immediately enter the United States on H-1B visas when actual needs arose. The plaintiff further alleged that the company submitted fraudulent invitation letters attesting to the...
