Jack Palmer, the former American employee of Infosys whose whistleblower lawsuit led to federal investigations culminating in the $34 million fine on the Indian IT giant for visa violations, will be richer by well over $5 million from the civil settlement.
Palmer’s own lawsuit, filed in an Alabama court in February 2011, had been dismissed by a federal judge last year, but it led to the opening of federal investigations against Infosys, forcing the company to cough up the largest-ever fine for any abuse of US visa programme. US Attorney John Bales indicated that Palmer would be “amply and justly rewarded”, without indicating the likely sum. But with an official noting that Palmer could be entitled to a maximum of 25 per cent, the former Infosys could conceivably receive up to around $8 million.
Although Infosys has denied any “systemic visa fraud”, indicating that it agreed to the punitive settlement in order to avoid the uncertainty of prolonged litigation and instead concentrate on its work, the US authorities have been severe in their comments. Attorney Bales has also sought to put other major foreign IT and other companies that operate in the United States by bringing guest workers under one or the other US visa programmes.
“We will not tolerate actions that mislead the United States and circumvent lawful immigration processes, whether undertaken by a single individual or one of the largest corporations in the world,” said Bales, adding: “The H-1B and B-1 visa programs are designed and intended to protect the American worker; and we will vigorously enforce the requirements of those programmes.”
David M. Marwell, Special Agent in Charge of Homeland Security Investigations in Dallas, said: “The investigation indicated that Infosys manipulated the visa process and circumvented the requirements, limitations, and governmental oversight of the visa programs….Companies that misuse the visa process can expect to be scrutinized and held accountable.”
In a statement on the settlement, the US Attorney’s Office spoke of Infosys “circumventing the requirements, limitations, and governmental oversight of the H-1B visa programme by knowingly and unlawfully using B-1 visa holders to perform skilled labor in order to fill positions in the United States for employment that would otherwise be performed by United States citizens or require legitimate H-1B visa holders”.