Federal investigators discovered over 10,000 foreign students connected to fraudulent employers in what Acting ICE Director Todd Lyons called just the tip of the iceberg in a sprawling fraud scheme exploiting the STEM Optional Practical Training program.

Empty Buildings and Phantom Workers Discovered

Acting ICE Director Todd Lyons announced Tuesday that Homeland Security Investigations officers uncovered widespread fraud after visiting suspect worksites across eight states. Investigators found empty buildings and locked doors at addresses where hundreds of foreign students supposedly worked. In other cases, hundreds of workers were listed as employed at residential addresses. Multiple fraudulent companies claimed to operate from identical locations, yet none actually leased the facilities.

Lyons revealed that investigators discovered phantom employees across Virginia, Texas, Georgia, Illinois, New York, New Jersey, North Carolina, and Florida. These foreign students obtained work authorization through OPT but never actually reported to their claimed worksites. When investigators found someone at suspect addresses, statements were inconsistent or individuals denied knowledge of the businesses. Many suspicious employers included nongovernmental organizations, according to federal findings.

Program Exploded Beyond Original Intent

The Optional Practical Training program allows international students on F-1 visas to work temporarily in fields related to their studies. When created under the Bush administration and expanded under Obama, officials expected only a few thousand participants before students returned home. Instead, the program ballooned into an uncontrolled pipeline with hundreds of thousands of foreign students working domestically. As program size exploded, so did fraud, Lyons explained.

Administration Cracks Down on Visa Abuse

Lyons emphasized the fraud was deliberate, coordinated, and criminal, not accidental. He described it as a blatant attack on American goodwill, rejecting claims this was victimless crime. Vice President JD Vance, appointed fraud czar by President Donald Trump, celebrated the discovery as another great win for the administration’s fraud task force. Vance declared the administration will not tolerate foreign nationals abusing the visa system at American expense. ICE dramatically expanded OPT oversight and continues investigating nationwide.