remanded H-1B Case: Software Engineering
Decision Summary
The appeal was remanded because the AAO found the Director did not sufficiently articulate the grounds to revoke the petition. The Director had revoked the H-1B approval based on a finding of material misrepresentation, alleging the petitioner colluded with a related company to submit multiple registrations for the same beneficiary. The AAO concluded that the Director's reasoning was insufficient and sent the case back for a new decision with a more thorough analysis.
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U.S. Citizenship and Immigration Services Non-Precedent Decision of the Administrative Appeals Office Date: JAN. 10, 2025 In Re: 35523297 Appeal of Texas Service Center Decision Form 1-129, Petition for a Nonimmigrant Worker (H-lB) The Petitioner seeks to temporarily employ the Beneficiary under the H-lB nonimmigrant classification for specialty occupations. See Immigration and Nationality Act (the Act) section 10l(a)(l5)(H)(i)(B), 8 U.S.C. § 1101(a)(l5)(H)(i)(b). The H-lB program allows a U.S. employer to temporarily employ a qualified foreign worker in a position that requires both (a) the theoretical and practical application of a body of highly specialized knowledge and (b) the attainment of a bachelor 's or higher degree in the specific specialty ( or its equivalent) as a minimum prerequisite for entry into the position. The Director of the Texas Service Center revoked the approval of the petition with a finding of material misrepresentation, concluding that the Petitioner did not rebut the evidence that showed that the Petitioner worked with another entity to unfairly increase the chance of the Beneficiary's selection in the H-lB registration process. The matter is now before us on appeal pursuant to 8 C.F.R. § 103.3. The Petitioner bears the burden of proof to demonstrate eligibility by a preponderance of the evidence. Matter ofChawathe, 25 I&N Dec. 369, 375-76 (AAO 2010). We review the questions in this matter de novo. Matter of Christo 's, Inc., 26 l&N Dec. 537, 537 n.2 (AAO 2015). Upon de novo review, we will withdraw the Director's decision and remand the matter for entry of a new decision consistent with the following analysis. I. LAW To ensure a fair and equitable allocation of the available H-lB visas in any given fiscal year, U.S. Citizenship and Immigration Services (USCIS) has instituted the registration requirement contained at 8 C.F.R. § 214.2(h)(8)(iii)(A)(i) . A petitioner must register to file a petition on behalf of a non citizen beneficiary electronically and a registration must be properly submitted pursuant to 8 C.F.R. § 103.2(a)(l) and the applicable form instructions to render a petitioner eligible to file an H-lB petition . A petitioner submitting a registration is required to attest under penalty of perjury that they have not worked with or agreed to work with another registrant, petition, agent, or other individual or entity to submit a registration to unfairly increase the chances of selection for the beneficiary in that specific registration. IfUSCIS finds that this attestation was not true and correct (for example, that a company worked with another entity to submit multiple registrations for the same beneficiary to unfairly increase the chances of selection for that beneficiary), USCIS will find that the registration was not properly submitted. This renders a petitioner ineligible to file a petition based on that registration pursuant to 8 C.F.R. § 214.2(h)(8)(iii)(A)(l). Moreover, USCIS may revoke the approval of an H-lB petition pursuant to 8 C.F.R. § 214.2(h)(l 1 )(iii), which states the following: (A) Grounds for revocation. The director shall send to the petitioner a notice of intent to revoke the petition in relevant part if he or she finds that: (1) The beneficiary is no longer employed by the petitioner in the capacity specified in the petition ... ; or (2) The statement of facts contained in the petition or the application for a temporary labor certification was not true and correct, inaccurate, fraudulent, or misrepresented a material fact; or (3) The petitioner violated terms and conditions of the approved petition; or (4) The petitioner violated requirements of section 101 (a)( l 5)(H) of the Act or paragraph (h) of this section; or (5) The approval of the petition violated paragraph (h) of this section or involved gross error. The regulations require that USCIS provide notice consisting of a detailed statement of the grounds for revocation of the petition approval and provide an opportunity for the petitioner to respond to the notice of intent to revoke. 8 C.F.R. § 214.2(h)(l l)(iii)(B). II. ANALYSIS The Petitioner filed the underlying petition on behalf of the Beneficiary seeking new employment and requesting consideration under the H-1 B numerical limitation (H-1 B cap). After initially approving the petition, the Director notified the Petitioner ofUSCIS' intent to revoke the approval of the petition, with a finding that the Petitioner made a material misrepresentation, through a notice of intent to revoke (NOIR). The Director concluded that the Petitioner's response to the NOIR did not sufficiently rebut the derogatory information and accordingly revoked the petition's approval with a finding of material misrepresentation. The Petitioner now appeals the Director's revocation of the petition's approval. Upon de novo review, we conclude that the Director did not sufficiently articulate the grounds to revoke the petition based upon the Petitioner's potential collusion with another entity to unfairly increase the chances of the Beneficiary's selection in the H-lB registration process or the related finding of material misrepresentation. For that reason, we will withdraw the Director's finding of 2 material misrepresentation and remand the matter for entry of a new decision consistent with the analysis below. The Director advised the Petitioner in the NOIR that it appeared that the Petitioner worked with another entity to submit multiple H-lB registrations to unfairly increase the chances of selection for the Beneficiary, and that it therefore falsely certified the attestation made in the submission of its H-1 B registration. 1 Specifically, the Director asserted that the Petitioner is related to and worked with another company, I I to file multiple registrations for the Beneficiary to unfairly increase the chances of selection. The Director stated that this conclusion was based upon users records which show that the Petitioner and I I both used the same IP address to submit their H-1 B cap registrations, that both companies used the same individual as their authorized signatory on these submissions, that the authorized signatory used the same phone number for both companies, and that the companies have 68 overlapping registrations between them, including for the Beneficiary in this matter. Based upon this information, the Director further advised the Petitioner that users determined that the multiple cap registrations submitted by these companies for the Beneficiary contain a willful misrepresentation of a material fact made to a users official with the intent to deceive for the purposes of obtaining an immigration benefit, and therefore the Director intended to revoke the petition approval with a finding of material misrepresentation. The Petitioner responded to the NOIR, acknowledging that I I is a related entity and that the companies use the same authorized signatory for its H-lB registrations. The Petitioner asserted, however, that the fact of a corporate affiliation between two entities that both file an H-1 B registration for the same beneficiary is not sufficient to demonstrate willful misrepresentation, fraud, an intent to deceive, or collusion. The Petitioner pointed to the regulation at 8 C.F.R. § 214.2(h)(2)(i)(G) which permits the filing of multiple H-lB petitions by related entities in the same fiscal year, so long as there is a legitimate business need for the multiple filings. The Petitioner asserted that both it and I have legitimate business needs for the software engineer position that was offered to the Beneficiary and was the basis for the multiple H-lB registrations. The Petitioner stated that the attestation it made in submitting the H-lB registration for the Beneficiary was therefore true and correct. Accordingly, the Petitioner asserted that there is no basis in law for the revocation of the approval. The Director concluded that the response was insufficient. The Director acknowledged the Petitioner's claim that both it and I !submitted their registrations based upon legitimate business needs, but stated that "[t]here is no allowance within users regulations for related companies to submit multiple H-lB registrations for the same beneficiary, regardless of legitimate business needs and bona fide job offers." The Director concluded that, because the evidence shows that the Petitioner and I I are related entities with shared human resources functions, this was sufficient to demonstrate that the two organizations worked together to submit multiple registrations for the same beneficiary to unfairly increase the chances of selection for that beneficiary, and therefore willfully misrepresented a material fact. Regarding the regulation at 8 C.F.R. § 214.2(h)(2)(i)(G), the Director 1 At the time of submission, the H-1 B registration form required certitying the following attestation: "I further certity that this registration (or these registrations) reflects a legitimate job offer and that I, or the organization on whose behalf this registration ( or these registrations) is being submitted, have not worked with, or agreed to work with, another registrant, petitioner, agent, or other individual or entity to submit a registration to unfairly increase chances of selection for the beneficiary or beneficiaries in this submission." 3 I concluded that this regulation is inapplicable to the filing of multiple H-lB registrations by related entities, because it only pertains to the filing of multiple H-lB petitions by related entities. On appeal, the Petitioner submits a brief and an additional affidavit from a human resources employee. The Petitioner repeats on appeal its contention that because the regulations permit the filing of multiple H-lB petitions by related entities whether there is a legitimate business need, there must be the same allowance for registrations. The Petitioner also maintains that there was no misrepresentation because it did not seek to unfairly increase the Beneficiary's chance of selection and that it acted in good faith based on its reasonable understanding of the attestation at the time of the registration submission. In the affidavit submitted on appeal, the human resources employee states that the Petitioner was advised by immigration counsel to file the 68 overlapping H-lB registrations for "each candidate under both [ the Petitioner] and I I although initially the Petitioner had planned that onlyl I would submit these H-lB registrations, and not both entities. The employee states that previously, it would submit H-lB registrations "for candidates under eitherl Ior [the Petitioner], not both." We are sympathetic to the Director's concerns regarding the submission of these H-lB registrations. The Petitioner and I I submitted 68 overlapping registrations, are related entities, and have stated that they knowingly submitted the common registrations including the one in this matter. Additionally, while not part of the record considered by the Director, the affidavit submitted on appeal does not support the conclusion that the Petitioner andl leach had 68 separate, legitimate job offers, but rather that the entities had a total of 68 job opportunities between them. This, in tum, undermines the Petitioner's claim that each of the overlapping registrations were based on legitimate job offers. Nevertheless, we conclude that a remand is warranted in this matter because the Director did not provide sufficient notice of the specific grounds for revocation based upon this information. Instead, the Director reminded the Petitioner of the website instructions for the H-1 B registration process, the attestation made in the submission of the H-lB registration, and the regulation at 8 C.F.R. § 103 .2( a)( 1) which requires that every benefit request be submitted in accordance with the form instructions. 2 But the revocation regulations require that the Director provide a petitioner a detailed statement of the specific grounds for revocation. 8 C.F.R. § 214.2(h)(l l)(iii)(A) and (B). We conclude that the Director has not done so here. Although the Director reminded the Petitioner of the attestation that it certified in submitting its H-lB registrations, the Director did not sufficiently notify the Petitioner of the grounds for revocation under 8 C.F.R. § 214.2(h)(l l)(iii)(A) and (B), for example, that the approval of the petition violated the requirements of section 10l(a)(15)(H) of the Act or paragraph (h) of 8 C.F.R. § 214.2 or that it involved gross error. 2 At the time of submission, the H-1 B registration instructions stated that: "TfUSCTS finds that this attestation was not true and correct (for example, that a company worked with another entity to submit multiple registrations for the same beneficiary to unfairly increase chances of selection for that beneficiary), USCTS will find that registration to not be properly submitted. Since the registration was not properly submitted, the prospective petitioner would not be eligible to file a petition based on that registration in accordance with the regulatory language at 8 CFR § 214.2(h)(8)(iii)(A)(l). USCIS may deny or revoke a petition based on a registration that contained a false attestation and was therefore not properly submitted. 4 Additionally, the Director did not sufficiently consider the Petitioner's response to the NOIR in deciding whether to revoke the petition, as required by 8 C.F.R. § 214.2(h)(l l)(iii)(B). In response to the NOIR, the Petitioner did not contest that it shares human resource functions with a related entity and that this human resource department knowingly submitted registrations by both entities on behalf of the Beneficiary. Because the Director interprets the attestation to entirely prohibit related entities from submitting multiple registrations for the same beneficiary, regardless of the existence of legitimate job offers or legitimate business needs, the Director concluded that this was a sufficient basis for finding the attestation falsely certified and for the revocation of the petition. But the Director did not sufficiently respond to the Petitioner's claim that it understood that it was truthfully certifying the attestation because both it andl had legitimate job offers. On remand, the Director should consider the Petitioner's claim and whether the evidence in the record supports it. Similarly, we note that in the revocation notice the Director mischaracterizes the language of the registration attestation. For example, the Director states that the attestation provides the legal basis for a denying petition if multiple H-1 B registrations are submitted for the same beneficiary "by related companies, even if there is a legitimate business need and separate, bona fide job offers." But the attestation does not discuss registrations by related companies, nor does it specifically prohibit the filing of multiple registrations "even if there is a legitimate business need and separate, bona fide job offers;" rather, it prohibits entities from working together to file multiple registrations for the same beneficiary for the purpose of "unfairly increasing the chances of the beneficiary's selection." In another instance, the Director characterizes the "issue at hand" as whether the Petitioner worked with another company "to increase the chances of a beneficiary's selection," rather than working with another company to unfairly increase the chances of a beneficiary's selection. Where the intended basis of the revocation is that the Petitioner falsely certified an attestation, the specific language to which the Petitioner attested is critical. Separately, we also conclude that the Director did not sufficiently articulate a basis to support the finding of material misrepresentation. As outlined by the Board of Immigration Appeals (BIA), a material misrepresentation requires that an individual willfully make a material misstatement to a government official for the purpose of obtaining an immigration benefit to which one is not entitled. Matter ofKai Hing Hui, 15 I&N Dec. 288, 289-90 (BIA 1975). The term "willfully" means knowing and intentionally, as distinguished from accidentally, inadvertently, or in an honest belief that the facts are otherwise. See Matter of Tijam, 22 I&N Dec. 408, 425 (BIA 1998); Matter of Healy and Goodchild, 17 I&N Dec. 22, 28 (BIA 1979). To be considered material, the misrepresentation must be one which "tends to shut off a line of inquiry which is relevant to the foreign national' s eligibility, and which might well have resulted in a proper determination that he be excluded." Matter of Ng, 17 I&N Dec. 536, 537 (BIA 1980). Accordingly, for an immigration officer to find a willful and material misrepresentation in visa petition proceedings, he or she must determine: 1) that the petitioner or beneficiary made a false representation to an authorized official of the United States government; 2) that the misrepresentation was willfully made; and 3) that the fact misrepresented was material. See MatterofM-, 6 I&N Dec. 149 (BIA 1954); Matter ofL-L-, 9 I&N Dec. 324 (BIA 1961); Matter ofKai Hing Hui, 15 I&N Dec. at 289-90. 5 In the instant matter, despite the valid concerns relating to the legitimacy of the H-lB registration, the Director did not provide an adequate analysis of these factors to support the finding of material misrepresentation. Although the Director discussed the framework above, the Director did not sufficiently apply the facts of the instant matter to each of the required elements. Specifically, the Director did not sufficiently explain how they determined that a misrepresentation was willfully made. The Director concluded that the misrepresentation was willful because the Petitioner "knew that the registration was based on a false attestation." But the Petitioner contended in its NOIR response, and claims again on appeal, that it did not intend to make any misrepresentation, that it was the understanding of the Petitioner that it was truthfully certifying the attestation, and that its interpretation of the attestation was reasonable. The Director does not sufficiently explain how the record establishes that the Petitioner did, contrary to its claim, intend to make a misrepresentation and that it understood that it was willfully misrepresenting facts in certifying the attestation. Therefore, we will withdraw the Director's finding of material misrepresentation. III. CONCLUSION The Director's revocation of the previously approved petition based upon the finding that the Petitioner worked with another entity or entities to submit multiple H-lB registrations to unfairly increase the chances of selection for the Beneficiary is withdrawn, as is the finding of material misrepresentation based upon this ground. The Director may choose to consider our observations as they evaluate the record. And if appropriate the Director may issue a NOIR that sufficiently articulates a ground or grounds to revoke the petition. We express no opinion regarding the ultimate resolution of this case on remand. ORDER: The Director's decision is withdrawn. The matter is remanded for the entry of a new decision consistent with the foregoing analysis. 6
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