Kandi Srinivasa Reddy’s alleged in H-1B scam

Reddy, a figure with ties to both the U.S. and India, has been implicated in a scheme that manipulated the H-1B visa lottery system through a process known as “multiple registration.” This tactic involves submitting numerous applications for the same individuals under different company names, significantly increasing their chances of being selected in the lottery.

According to the Bloomberg report, Reddy controlled several entities, including Cloud Big Data Technologies LLC, Machine Learning Technologies LLC, and others. These companies, which had similar names and shared addresses, submitted thousands of entries, securing hundreds of H-1B visas. This manipulation not only gamed the lottery system but also disadvantaged companies that followed the rules.

Data from 2020 to 2023 accessed by Bloomberg shows that Reddy’s candidates were virtually assured lottery wins. His companies got a total of 54 visas, far more than any previous year. They scored more than 300 since 2020.

Changes bought in the lottery system to stop the fraud and pick the right talent, something like if a person is suggested by more than one company got a better weightage, was duped by staffing companies. The median salary at a staffing firm in 2023 was about $90,000, the data show, compared with $125,000 for regular employers. Reddy’s recruits made about $87,000.

Lucas Garritson, a Texas lawyer representing Reddy, told Bloomberg that USCIS hadn’t followed the proper procedures for prohibiting the activity, nor did it have proof that Reddy’s companies broke the rules.

Kandi Srinivasa Reddy’s link to Congress

Reddy’s involvement goes beyond just business. He was Congress Candidate from Adilabad assembly constituency. He has also established a foundation to support farmers and owns a media outlet. Bloomberg report states, despite his claims of minimal involvement in the companies linked to the visa fraud, documents and public statements suggest that Reddy had a more substantial role.

In a brief interview to Bloomberg, Reddy stated that he was merely a registered agent for the companies. However, evidence, including an affidavit filed with Indian election officials and business registry documents in the U.S., shows that he or his wife own or control these entities.