Kandi Srinivasa Reddy, an Indian-American businessman and political figure, is currently under scrutiny for his alleged involvement in orchestrating an H-1B visa lottery scam. Investigations conducted by Bloomberg reveal that Reddy manipulated the US visa lottery system through a network of companies, exploiting loopholes to gain an unfair advantage.
Uncovering the Alleged Scam
Reddy reportedly submitted multiple H-1B visa applications for the same individuals under different company names. This tactic significantly increased their chances of selection in the lottery, thus bypassing the fair and competitive process. Bloomberg’s investigation identified Cloud Big Data Technologies LLC, Machine Learning Technologies LLC, and several other entities owned by Reddy as the key players in this operation. These companies collectively submitted thousands of applications, securing hundreds of H-1B visas.
Ownership and Control
Despite Reddy’s claims of being merely an agent for the companies, documents accessed by Bloomberg suggest that he and his wife owned and controlled the entities involved. This approach not only gave Reddy’s candidates an unfair edge but also undermined companies adhering to lawful practices.
Lottery System Exploitation
Recent changes to the H-1B lottery system aimed at reducing fraud were manipulated by staffing firms. One such modification prioritized applicants endorsed by multiple companies, a loophole exploited by Reddy’s firms. Data shows that Reddy’s companies secured over 300 visas since 2020, including 54 in 2023 alone, outpacing many other firms.
Financial and Employment Disparities
Bloomberg data highlighted salary discrepancies between staffing firms and regular employers. While regular employers offered a median salary of $125,000, staffing firms averaged $90,000. Reddy’s recruits, however, earned about $87,000, raising questions about wage standards and exploitation within the system.
Legal and Political Connections
Kandi Srinivasa Reddy, represented by Texas-based lawyer Lucas Garritson, maintains that USCIS failed to enforce adequate safeguards against such manipulation and asserts that his companies did not violate any rules. Garritson argued that there is no concrete evidence proving Reddy’s direct involvement.
Reddy’s connections extend beyond business into politics. He previously contested elections as a candidate for the Indian National Congress (INC) from Telangana’s Adilabad constituency and currently serves as the party’s in-charge for the area. Additionally, he owns a media outlet and a firm supporting farmers, further establishing his influence in both countries.
The Broader Implications
The controversy surrounding Kandi Srinivasa Reddy underscores deeper vulnerabilities in the H-1B visa system, particularly how staffing firms manipulate processes to their advantage. It also raises concerns about the ethical standards of businesses and individuals exploiting these gaps.
While investigations continue, this case highlights the pressing need for reforms to ensure fairness, transparency, and accountability in the H-1B visa allocation process. As the story unfolds, stakeholders in the tech and immigration sectors await further developments that could reshape the future of skilled worker migration policies.
