Full Breakdown
ICE Uncovers Widespread Fraud in Optional Practical Training Program
5/14/2026, 5:05:58 AM
The Investigation Unveils Suspect Employers and “Phantom Employees”
Acting ICE Director Todd Lyons announced that a Homeland Security Investigations (HSI) probe has identified more than 10,000 foreign students who claim employment with “highly suspect” OPT employers. The inquiry, conducted in eight states—Virginia, Texas, Georgia, Illinois, New York, New Jersey, North Carolina and Florida—found empty buildings, locked doors, residential addresses listed as work sites, and numerous “phantom employees” who never reported to the claimed locations. Lyons described the findings as “just the tip of the iceberg” and said the agency has “dramatically expanded oversight of OPT” nationwide.
Background of the OPT Program
The Optional Practical Training (OPT) program, created under the George W. Bush administration and expanded during the Barack Obama era, permits F-1 visa students to work in fields related to their studies for up to 24 months after graduation. DHS officials originally projected only a few thousand participants; by 2024 the program authorized over 400,000 work permits. Proponents argue OPT supplies skilled labor, while critics contend it functions as a de-facto guest-worker pipeline.
Key Figures and Agencies
- Todd Lyons – Acting Director, ICE
- John Condon – Acting Associate Director, HSI
- Kristi Noem – Secretary of Homeland Security (as cited by Noem to Sen. Eric Schmitt)
- J.D. Vance – Vice President and “fraud czar” appointed by President Donald Trump
- Paul Gosar – Representative (R-AZ) and legislative sponsor to eliminate OPT
- Rosemary Jenks – Co-founder, Immigration Accountability Project
- Mark Krikorian – Director, Center for Immigration Studies
Data and Statistics
- 10,000+ foreign students flagged among the top 25 OPT employers.
- >400,000 OPT authorizations issued in 2024.
- HSI visits revealed sites where one employer listed three students while records showed over 500 claims.
- Investigators noted “suspicious financial transactions moving cash across multiple countries,” tax liens, civil lawsuits, and offshore payroll structures.
Official Statements & Responses
ICE leadership asserted that the program “ballooned into an uncontrolled guest-worker pipeline” and that the identified fraud “is deliberate, coordinated and criminal.” DHS Secretary Kristi Noem indicated the agency is preparing new rules for OPT. Vice President J.D. Vance praised the discovery, stating the administration “will not tolerate foreign nationals abusing our visa system at the expense of the American people.”
Criticism & Opposition
Representative Paul Gosar called the findings “should outrage every American citizen looking for a job,” arguing the program “undermines wages” and favors multinational corporations. Rosemary Jenks said OPT “is where the foreign students actually start replacing American workers at jobs.” Mark Krikorian described the DHS inspections as “a good sign” but questioned whether they signal a move to eliminate the program.
Conflicting Reports & Gaps
Lyons’ “tip of the iceberg” comment provides no independent estimate of total fraud, leaving the overall scale uncertain. Sources differ on the program’s size—some cite “hundreds of thousands,” others specify “over 400,000”—highlighting a need for consistent data.
Verbatim Quotes
- “This is deliberate, coordinated and criminal.” — Todd Lyons, Acting ICE Director
- “have identified over 10,000 foreign students who claim to be working for highly suspect employers.” — Todd Lyons, Acting ICE Director
- “One employer we visited claimed to employ only three students through OPT, while our records show over 500 foreign students claiming to work there,” — John Condon, HSI Acting Associate Director
- “should outrage every American citizen looking for a job.” — Paul Gosar, Representative (R-AZ)
- “OPT is where the foreign students actually start replacing American workers at jobs,” — Rosemary Jenks, Immigration Accountability Project
What’s Next
Secretary Noem has signaled that the agency is working on new OPT regulations, and Rep. Gosar’s legislation to eliminate the program is moving forward. ICE officials indicated that investigations will continue at additional sites, and the administration plans to use the findings to shape future immigration policy.
