Hari Karne Admits Visa Fraud Scheme

Hari Karne, 32, of Hyderabad, India, admitted today to orchestrating a scheme to defraud federal immigration authorities by fabricating payroll records and submitting false documents to maintain foreign workers’ H-1B visas. The U.S. immigration manager for SCM Private Limited — which had ties to SCM Data Inc. and MMC Systems Inc. — pleaded guilty to conspiracy to obstruct justice in Newark federal court.

Karne admitted he directed foreign workers to pay cash out of pocket to SCM Data and MMC Systems so the companies could issue sham payroll checks. These phony checks were then used as proof of full-time employment — a requirement under the H-1B visa program — even though the workers were only paid when placed with third-party clients. Without actual work, they were told they had to buy their own paystubs to stay in legal status.

The H-1B visa program allows U.S. businesses to hire foreign workers with specialized skills, but demands proof of full-time employment and wage compliance monitored by USCIS and the Department of Labor. Karne and his co-conspirators lied on visa applications, claiming workers had full-time roles and steady salaries, while operating a shell payroll system designed to deceive federal agencies.

In early 2015, after MMC Systems stopped paying a worker referred to as ‘Individual 1,’ Karne personally instructed the worker to hand over cash so MMC Systems could issue a fake paycheck for January 2015. On February 20, 2015, Karne emphasized the need for valid paystubs, warning that USCIS could audit and question employment status at any time.

When the Department of Labor launched an audit, Karne doubled down. He helped create fraudulent leave and vacation slips for periods when foreign workers had no assignments and received no pay. These forged documents were submitted to USDOL to hide the illegal wage gaps and make it appear the companies were in compliance.

Karne, who worked from India but facilitated visa fraud impacting U.S. immigration systems, faces a maximum penalty of five years in prison. Sentencing is scheduled for a later date before U.S. District Judge Kevin McNulty. The case was prosecuted by the U.S. Attorney’s Office for the District of New Jersey.