Full Breakdown
Texas Attorney General Sues Chinese National Over Alleged Fake Childcare Fronts Issuing Fraudulent H-1B Visas
5/13/2026, 5:11:53 AM
Alleged Fraudulent Childcare Fronts and Lawsuit
Texas Attorney General Ken Paxton sued Chinese citizen Yuan Yao and his company Gold Qi Holdings, alleging that their Texas businesses—Allen Infant Care Center and DFW ABA Center—falsely advertised childcare services and issued fraudulent H-1B work permits. The complaint says the entities lack child-care licenses and violate the Texas Deceptive Trade Practices Act. Paxton seeks $10,000 per violation.
Background and Prior Enforcement Actions
Paxton has recently filed two lawsuits targeting alleged visa program abuses. On April 29, 2024, he sued a Houston-area business described as a “birth-tourism” operation that helped foreign nationals obtain visas to give birth in the United States, marking the first of the two suits filed within a month.
Legal Claims, Violations and Damages
The filing alleges false advertising, misuse of purported childcare services, and facilitation of illegal H-1B filings. Under the Texas Deceptive Trade Practices Act, the state requests $10,000 per violation; the exact number of infractions is not disclosed.
Implications for Immigration Policy and Consumer Protection
The lawsuit reflects Texas’s effort to enforce immigration and consumer protection laws by targeting alleged misuse of visa programs and deceptive service advertising. Paxton framed the action as a deterrent against future scams and a means to protect Texas families.
Official Statements from the Attorney General
Paxton called the suit a warning to anyone trying to exploit the H-1B system and stressed the state’s commitment to a visa program that benefits American workers and blocks unlawful entry by foreign nationals.
Verbatim Quotes
- “What they're saying: "Let this be a warning to anyone considering trying to scam the H-1B visa program.” — Ken Paxton, Texas Attorney General
- “I will continue fighting to ensure that the H-1B program serves the interests of Americans, not Chinese nationals, and that those who abuse the program are held accountable to the fullest extent of the law," Paxton said.” — Ken Paxton, Texas Attorney General
- “My office will continue to work to stop any foreign national from entering this country unlawfully.” — Ken Paxton, Texas Attorney General
Gaps in Reporting and Unanswered Questions
The source gives no response from Yuan Yao, Gold Qi Holdings, or the accused businesses. The precise number of fraudulent permits, filing date, and the court handling the case remain undisclosed.
Next Steps
The suit will proceed in Texas state court under the Deceptive Trade Practices Act. Depending on the court’s findings, the state may seek further injunctions or actions against other entities alleged to misuse immigration programs.
