Kandi Srinivasa Reddy USA, a Congress leader from Adilabad, Telangana, is under investigation for his alleged involvement in a scheme to manipulate the H-1B visa lottery system in the United States. According to a Bloomberg report, Reddy, the founder of Cloud Big Data Technologies LLC, is accused of orchestrating a scheme that secured over 300 H-1B visas through manipulation of the lottery process. The fraud reportedly exploited loopholes in the system, allowing Reddy’s companies to submit multiple entries for the same workers, greatly increasing their chances of selection. Here’s a deeper dive into the allegations and Reddy’s background.
Who is Kandi Srinivasa Reddy?
Kandi Srinivasa Reddy hails from Hasnapur village in the Tamsi Mandal, Adilabad district, Telangana. He moved to the United States in 2011 to pursue a master’s degree at the Missouri University of Science & Technology Rolla. After completing his studies, Reddy settled near Dallas, Texas, where he worked as a tech consultant. He eventually founded Cloud Big Data Technologies LLC in 2013, alongside other ventures, including Artifint Technologies and Machine Learning Technologies LLC.
Reddy is also known for his philanthropic work in his hometown, where he founded the Indian American Farmers Cooperative to support local farmers. He also runs a television and online news platform. Despite his business success, his political career has been marked by controversy. After initially aligning with the BJP, Reddy joined the Indian National Congress (INC), running for a seat in the Telangana Assembly. However, he lost the election by a significant margin, finishing third.
Political Career and Legal Concerns
Kandi Srinivasa Reddy has also faced legal scrutiny, having disclosed several criminal cases in his election affidavit. These cases include charges related to criminal intimidation (IPC Section 506), bribery (IPC Section 171E), and cheating (IPC Section 420). Despite the pending charges, Reddy has yet to be convicted in any of these cases.
His financial status also raised eyebrows, with assets worth more than Rs 50 crore and liabilities nearing Rs 5 crore, according to his public disclosures.
The Alleged H-1B Visa Fraud Scheme
Reddy’s companies, including Cloud Big Data Technologies LLC and Machine Learning Technologies LLC, are at the heart of the H-1B visa manipulation scheme. The U.S. H-1B visa program is designed to allow foreign workers in specialized fields to obtain employment in the United States, but the visa lottery system has been repeatedly criticized for inefficiencies and loopholes that allow abuse.
According to the investigation, Reddy’s companies submitted multiple entries for the same workers, often under different company names, to improve their chances of securing a visa. The practice, which exploits loopholes in the system, enabled Reddy to submit over 3,000 lottery entries, resulting in 300 successful H-1B visa approvals. This manipulation created an unfair advantage over legitimate applicants who adhered to the rules.
Reddy’s companies charged workers a significant fee, reportedly 20 to 30 percent of their annual salary—amounting to more than $15,000 per worker—to help them secure a spot in the visa lottery.
How the Scam Operated
The scheme reportedly operated by submitting multiple entries under different company names for the same set of workers. This increased the likelihood that Reddy’s companies would secure a H-1B visa for these workers, while disadvantaging other companies that followed the rules. The Trump administration’s changes to the H-1B lottery process in 2020 inadvertently contributed to the surge in multiple applications for the same employees.
Despite Reddy’s claims of only minimal involvement, documents suggest that he had significant control over the companies accused of the manipulation. The practice, while controversial, was not entirely illegal, but it raised serious ethical questions about its fairness in the visa lottery system.
Reddy’s Defense and Legal Response
Kandi Srinivasa Reddy has vehemently denied any involvement in illegal activity, claiming that the practice of submitting multiple H-1B applications is not against the law. He further argued that employees had the right to choose which company to join, suggesting that the process was legitimate.
His lawyer, Lucas Garritson, has defended the actions of the companies, stating that USCIS did not have the right to ban this activity and lacked concrete proof that any laws were violated. Reddy’s defense emphasizes that his actions were within the framework of the law, although the manipulation of the visa system has raised concerns about its ethical implications.
Impact and Implications
The alleged manipulation of the H-1B visa system has significant ramifications not only for the U.S. immigration system but also for foreign workers seeking to legally work in the U.S. The practice created an uneven playing field, allowing Reddy’s companies to gain an unfair advantage by exploiting the system. For those who played by the rules, this manipulation deprived them of an equal opportunity.
If proven guilty, Reddy and his companies could face significant civil and criminal penalties. This case highlights the vulnerability of the H-1B lottery system to exploitation and raises questions about the fairness of the process.
Conclusion
The case of Kandi Srinivasa Reddy serves as a stark reminder of how loopholes in the H-1B visa system can be manipulated to favor a few, while others follow the rules and still fail to secure a visa. As the investigation continues, the outcome will likely have a significant impact on both immigration policy and the business practices of companies involved in similar schemes. The legal proceedings will need to ensure that appropriate measures are taken to safeguard the integrity of the visa system and prevent any future exploitation.