Paxton accuses Chinese national of running fake childcare businesses in Texas

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Ken Paxton, Texas attorney general and Republican US Senate candidate, speaks during the Ronald Regan Dinner at the Conservative Political Action Conference (CPAC) in Grapevine, Texas, US, on Friday, March 27, 2026. The Conservative Political Action

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COLLIN COUNTY, Texas - Texas Attorney General Ken Paxton has filed a lawsuit against a North Texas business he said is being used to issue fraudulent work visas for employees.

The filing lists Gold Qi Holdings and Yuan Yao, who Paxton said is a citizen of China. Yao is accused of owning several Texas businesses that falsely advertise childcare services.

Paxton said the businesses, including Allen Infant Care Center and DFW ABA Center, were offering nonexistent services as a front to issue fake work permits for employees. The lawsuit states neither business is a licensed child-care facility.

What they're saying:

"Let this be a warning to anyone considering trying to scam the H-1B visa program. I will continue fighting to ensure that the H-1B program serves the interests of Americans, not Chinese nationals, and that those who abuse the program are held accountable to the fullest extent of the law," Paxton said. "My office will continue to work to stop any foreign national from entering this country unlawfully."

Paxton is accusing the business and Yao of violating the Texas Deceptive Trade Practices Act. The lawsuit is seeking $10,000 in damages for each violation.

Houston-area business accused of being ‘birth-tourism’ business

This is the second such lawsuit filed by Paxton in the last month.

On April 29, Paxton filed a lawsuit against a Houston-area business he said was a "birth-tourism" business that helped clients navigate getting visas to enter the United States to give birth so that their children could have U.S. citizenship status.