Is some law violated ?

[h1bholder000]

hey ****,
I need ur expertise on this one

This is a real twister for me.

A corporation I know was founded by 2 guys(I think it was S-coprporation, not sure). One is on H1B visa and the other is a GC holder.

Lets call this corporation, 'Corporation X'.

The H1B visa holder was employed by the GC holders other company(lets call it 'Companay Y') and was running 'Corporation X' under the guise of a temporary contractor. Also all his duties were non-technical.

Is this a clever level of indirection ?
Or is it violating some law ?

Do I have to report it to the autorities, if it is illegal ?
Can i be charged later if I know it is illegal and i fail to report it ?

Also in case i choose to report it, whom do i report it to and how ?

[h1bholder000]

Now considering the fact that I cannot get hold of the LCA for the H1B visa holder.
And I know for sure that he was running the company(it says on their website that hes president and CEO...duh ) and the fact that he owns like 25% shares of the company hes CEO of(at one point it was 50%)

do u think this is violation of some law ?
from all the posts i have read in this forum it does sound grossly illegal ?

[h1bholder000]

I am 100% sure that the person is on H1B cos I have that information from the horses mouth and even his employer. I am also sure that he has been running the company cos I see him daily(our offices are on different floors). Also he introduces himself as CEO.

But lets even forget about all this CEO stuff.

The very fact that an H1B holder shows up in the office of a company he started sounds fishy to me, or does it ?

Furthermore he has not really invested money at all. Hes one of the founders who came up with the idea(so he has 25% shares). Can you hold shares of a company and not invest money on H1B ?

btw I really appreciate all your help regarding this matter.

I wonder if you could point me to the published laws(online link) so I could become more knowledgable regarding this matter and not bother you as often as I am doing now.

You must have read the laws quite a few times i guess.

[h1bholder000]

"The very fact that an H1B holder shows up in the office of a company he started sounds fishy to me, or does it ? "

What i really meant by the above statement was; assuming the H1B holder does not have work authorization to work for the company he started, if he shows up in office everyday from 9-5, there is a good possibility he is working for the company. And isnt that illegal ?

Also regarding shares...
If you dont buy them, dont invest money in the company, and are not working for the company, then why would the company offer them to you ?
And if you ever receive them wouldnt you have to report them as a financial gain for some services rendered(which would be illegal again due to wwork authorization) ?

thanks