If you classify someone as foo and have them do bar you can pay them above the prevailing rate for foo while actually being below the prevailing rate for bar.

It can also serve as a way for third party to earn a sizable chunk of that persons wages which would be a less likely scenario for someone hired stateside.

Why would they agree to be paid under when they are in tech where companies until at least a year ago were fighting for employees? They could literally cross the street in SF and land a better job at a better price. I mean, for a country that prides itself on free markets, it’s remarkable that you believe that free markets simply stop working.

And here’s the kicker. An H1B employee costs a company a lot more than a resident because of government fees and lawyer costs.

So if you have a citizen and an H1B holder drawing the same salary, it actually means the company values the H1B holder far more than they do the citizen.

H1B can't simply cross the street and change companies. If they find themselves between jobs they will shortly find themselves between countries and many companies have been found to have made agreements not to hire each others people.

So, as long as you're willing to commit fraud, you can commit fraud?

How is fraud a problem with the visa or the visa holder?