Major H-1B Lottery Scam Uncovered Involving Indian-American Businessman Kandi Srinivasa Reddy

A significant H-1B visa lottery scam has been exposed, revealing that multiple companies submitted numerous applications for the same individuals, manipulating the system to secure American visas. Kandi Srinivasa Reddy, an Indian-American businessman, has been identified as the mastermind behind the fraud. Reddy, who recently ran as a candidate for the Congress party in the Telangana local election and lost, is now under scrutiny.

An investigation by Bloomberg has revealed that this scam has been ongoing for several years, with many other firms adopting similar practices. Here are 10 key points about Reddy and the H-1B scam:

Multiple Registrations: The scam involves submitting multiple applications for the same individual under different company names, thereby increasing their chances of selection in the annual H-1B lottery.

Reddy's Control: Reddy controlled several companies with shared addresses, such as Cloud Big Data Technologies LLC and Machine Learning Technologies LLC, through which he rigged the system and secured hundreds of H-1B visas.

Assured Visas: Those who applied for H-1B visas through Reddy's companies were guaranteed visas, disadvantaging companies that adhered to the rules.

"Amazon of Staffing": Bloomberg described Reddy's operation as the "Amazon of staffing".

Reddy's Background: A Telugu NRI, Reddy studied for his master's degree in the US and worked as a tech consultant before settling there.

Profit from Workers: Reddy took 20% to 30% of the workers' pay, amounting to around $15,000 or more annually.

2020 Lottery Entries: In the 2020 lottery, Reddy's Cloud Big Data submitted 288 names, while his other companies submitted the same names multiple times, totaling over 3,000 entries.

Denial of Involvement: Reddy claimed to Bloomberg that he is merely a registered agent for the companies and has no direct involvement, though official documents and his election data state otherwise.

Philanthropy: Reddy has a foundation to support farmers in his hometown in India and owns a television and online news operation.

Legal Defense: Reddy told the Times of India that his actions were legal, arguing that multiple entries give employees the choice of companies. He mentioned that recent changes require passport numbers, making it easier to track multiple entries.

The exposure of this scam highlights the vulnerabilities in the H-1B visa system and the need for stricter regulations to prevent such exploitation.