According to a lawsuit filed by Texas Attorney General Ken Paxton, “a citizen of the People’s Republic of China” named Yuan Yao promotes daycare businesses that do not exist.
Back in April 28, 2026, Sara Gonzales, a plucky investigator associated with Blaze Media, published a video, “This Daycare Has 37 H-1B Visas and CCP Ties…But No Kids?” It included her efforts to extract some inculpatory admissions from the skittish owner of fake daycares supposed to be operating in Allen, Texas: “Is it true that you’re charging $20,000 for visas? Is your dad a member of the CCP?”
A couple of weeks later, Paxton filed suit “against a North Texas businessman and his company, alleging they operated fake childcare businesses in order to fraudulently sponsor foreign workers through the H-1B visa program” (Texas Score Card, May 12, 2026).
The lawsuit, filed in Collin County, names Yuan Yao and Golden Qi Holdings, LLC as defendants. The state alleges Yao, identified in the petition as “a citizen of the People’s Republic of China,” operated websites advertising childcare services that “do not exist.”
According to the lawsuit, examples of the alleged sham businesses include Allen Infant Care Center and DFW ABA Center, both tied to an address at 600 S. Jupiter Road in Allen.
The state alleges the businesses falsely claimed to provide legitimate childcare services “in part to fraudulently sponsor H-1B visas for employees.”….
The attorney general’s office is seeking temporary and permanent injunctions blocking the defendants from advertising or operating childcare facilities in Texas without licenses, along with civil penalties under the Texas Deceptive Trade Practices Act and Human Resources Code.
“Let this be a warning to anyone considering trying to scam the H-1B visa program,” Paxton said. “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’s lawsuit refers to an informant’s claim that “Defendant Yao’s father works for the Chinese government” but cites no report that Yao’s father might also be a member of the Chinese Communist Party.
It is no coincidence that Paxton’s investigation and filing came on the heels of the work by Gonzales. Texas Scorecard notes that his lawsuit heavily relies on “recent reporting by Blaze TV and Texas Scorecard personality Sara Gonzales,” who when visiting an alleged daycare center found only an empty building. It doubtless took no prodding for Paxton to act, since his office has been investigating a slew of North Texas businesses for fraudulent H-1B applications that cite the nonexistent operations of “ghost offices.”
Also see:
Texas Attorney General: The State of Texas, Plaintiff, v. Golden Qi Holdings, LLC and Yuan Yao, Defendants
“Mrs. Gonzales then spoke with Defendant Yao outside of the facility. He refused to answer her questions, in part because ‘you are not government…why I answer you [sic]?’ Before driving off in his BMW i8 sports car, Defendant Yao told Mrs. Gonzales that ‘this [referring to the building at 600 S. Jupiter Road] is before, it’s just closed [for now] and will be new open [sic].’ ”
