TN Visa Fraud Case Settles for $11.5 Million, Awarding $3.45 Million in Attorney Fees

TN Visa Fraud Case Settles for $11.5 Million, Awarding $3.45 Million in Attorney Fees

A federal court has approved a significant settlement of $11.5 million in a class-action lawsuit involving Mexican workers who were allegedly exploited through a TN visa fraud scheme. The case, Aquino Martinez v. Mobis Alabama LLC et al., centered on claims that professional engineers and technicians were brought to the United States on TN (Trade NAFTA) visas for specific roles but were then forced into manual labor. Attorneys representing the affected workers were awarded $3.45 million in fees as part of the settlement, which covers approximately 614 workers who held TN visas between August 11, 2018, and the present.

The lawsuit highlighted a pattern of alleged international fraud, where recruiters and contractors used TN visas, intended for professionals, as a means to place workers in jobs different from what was initially promised. This practice allegedly involved discriminatory pay and excessive working hours, deviating significantly from the professional engineering and technical roles advertised. The case gained attention for its use of the Racketeer Influenced and Corrupt Organizations (RICO) Act, suggesting a broader pattern of fraudulent activity beyond a typical wage dispute.

Allegations of a “Bait-and-Switch” Scheme

The core of the legal action involved allegations that employers and staffing intermediaries engaged in a “bait-and-switch” tactic. Workers claimed they were recruited for professional engineering and technical positions, only to be assigned to manual assembly line work. This discrepancy between the promised job and the actual work led to claims of fraud, exploitation, and violations of labor laws. The use of TN visas, designed for specific professional occupations, in this manner drew scrutiny, as it was allegedly used to circumvent proper labor agreements and protections.

The settlement fund of $11.5 million is structured to compensate class members for various losses. Workers are set to receive $30 for each week they worked under Fair Labor Standards Act relief. Additionally, eligible members of the racketeering class may receive up to $16,800 each in fraud and RICO damages. These damages are tied to the costs and misrepresentations associated with relocating for professional jobs that, according to the complaint, did not exist as promised.

Government Stance on Visa Fraud

The settlement comes at a time when federal immigration agencies have intensified their focus on visa fraud. Statements from the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS) indicate a zero-tolerance approach to visa misuse and unauthorized employment arrangements. For instance, DHS Secretary Kristi Noem stated in September 2025, following a raid at a Hyundai facility, that companies must understand and follow the rules when operating in the United States, encouraging the employment of U.S. citizens and those who adhere to the law.

HSI Special Agent in Charge Steven Schrank echoed this sentiment, emphasizing accountability for those who exploit the system. USCIS also highlighted its role in uncovering an immigration fraud scheme in June 2026, revoking work permits and initiating deportation processes for those involved. These actions underscore a more aggressive enforcement climate surrounding professional visa categories and reinforce the government’s message that visa abuse will be met with consequences.

Broader Implications for Staffing and Labor Practices

This class-action settlement has broader implications for multinational staffing practices and the scrutiny of subcontractor risks. Companies that rely on outside recruiters or labor vendors for foreign hiring, visa processing, and on-site placement now face increased oversight. The structure of large supply chains, where responsibility can be blurred across multiple contractors and staffing agencies, has been a long-standing concern for worker advocates. This case provides a significant monetary outcome and a legal record that frames the allegations as more than isolated labor disputes.

The legal proceedings and the resulting settlement put TN visas, labor recruitment, and auto-sector staffing under a legal lens. The case demonstrates how allegations of visa fraud and labor exploitation can intertwine, impacting workers’ immigration status and their rights in the workplace. The clear paper trail left by this case—a class of approximately 614 Mexican nationals, a court-approved $11.5 million settlement, and a $3.45 million fee award—serves as a notable outcome in the ongoing efforts to address visa misuse and protect foreign workers.