Hiral Patel Admits to Obstructing Justice in Visa Fraud Scheme

A New Jersey human resources manager has admitted to obstructing a federal investigation tied to a widespread fraud scheme involving foreign worker visas. Hiral Patel, 34, of Jersey City, pleaded guilty to conspiracy to obstruct justice in connection with phony payroll records and fake leave slips submitted to federal authorities.

Patel worked for two IT consulting firms — SCM Data Inc. and MMC Systems Inc. — that claimed to place foreign nationals with specialized technical skills at client companies across the U.S. The firms sponsored H-1B visas for recruits, often foreign students or recent graduates, by falsely stating they held full-time positions at set annual salaries.

In reality, the workers were only paid when placed with third-party clients. Those left idle were forced to hand over cash equal to their supposed gross wages so the companies could issue fraudulent payroll checks. These fake checks were then used to deceive U.S. Citizenship and Immigration Services into believing the workers were legitimately employed.

When the U.S. Department of Labor launched an audit, Patel and others fabricated vacation and leave records to cover gaps in employment and payment. The documents were submitted to conceal the fact that workers went unpaid for months — a direct violation of federal H-1B program rules.

Patel admitted she prepared these false leave slips in February and March 2015 on behalf of SCM Data and MMC Systems. She now faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 1, 2017, before U.S. District Judge Kevin McNulty in Newark federal court.

The investigation was led by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under Special Agent in Charge Terence Opiola, and the U.S. Department of Labor’s Office of Inspector General, directed by Special Agent in Charge Michael Mikulka. Assistant U.S. Attorney Joyce M. Malliet is prosecuting the case. Patel is represented by Michael V. Gilberti, Esq.