This article describes investigative methods used to uncover LMIA fraud networks. The patterns described here are based on real investigations. If you have evidence of similar fraud, we encourage you to share your findings on this platform.
The Shell Company Pattern
Across Canada, investigators have identified a consistent pattern: multiple companies registered to the same address, each obtaining LMIA work permits, but with no visible business operations. These "shell companies" exist solely to obtain and sell work permits to foreign nationals desperate for a path to permanent residency.
How Investigators Identify Shell Company Networks
The methodology involves cross-referencing several public databases:
- Corporate registries: Provincial registries show company registration details, directors, and registered addresses
- Job Bank postings: LMIA applications require Job Bank postings - these are searchable
- Google Street View: Physical verification of business locations often reveals residential homes or empty offices
- Business directories: Legitimate businesses typically have web presence, reviews, and verifiable operations
Red Flags That Indicate Shell Company Fraud
1. Multiple Companies, Same Address
When 5, 10, or even 20+ companies share a single address - especially a residential address or small office - this is a major red flag. Legitimate businesses occasionally share space, but not at this scale.
2. No Online Presence
Companies supposedly hiring foreign workers but with:
- No website
- No Google Business listing
- No social media
- No customer reviews
- No industry presence
3. Suspicious Job Postings
Job Bank postings that appear designed to fail the "Canadian first" test:
- Wages significantly above market rate (to deter Canadian applicants who might actually apply)
- Unusual combinations of requirements
- Vague job descriptions
- Positions that don't match the purported business
4. Pattern of Directors
The same individuals appearing as directors across multiple shell companies, sometimes with slight name variations.
5. Recently Formed Companies
Companies formed within the past 1-2 years, with no business history, immediately seeking foreign workers.
The Business Model
The fraud operates as follows:
- Company formation: Register a corporation with minimal capital. Cost: a few hundred dollars.
- LMIA application: Apply for Labour Market Impact Assessment, claiming inability to find Canadian workers.
- Work permit sale: Sell the LMIA-backed job offer to foreign nationals for $30,000 to $100,000+.
- Repeat: Form new companies, obtain more LMIAs, continue selling.
The "employee" may never actually work for the company. They've paid for the work permit as a pathway to permanent residency. The company exists only on paper.
Why This Matters
For Foreign Workers
- Workers pay life savings for fraudulent job offers
- Many arrive to find no real job exists
- Closed work permits tie them to abusive situations
- Victims face deportation if they report fraud
For Canadians
- The LMIA system is meant to protect Canadian workers
- Fraudulent LMIAs undermine legitimate immigration
- Shell companies don't pay taxes or create real jobs
- Public trust in immigration system erodes
For Legitimate Employers
- Real businesses with genuine labour shortages face increased scrutiny
- LMIA processing delays affect legitimate applications
- The system's credibility suffers
What Needs to Happen
Investigators and advocates are calling for:
- Proactive auditing: ESDC should cross-reference company registrations with LMIA applications
- Physical verification: Site visits before LMIA approval, not just after complaints
- Pattern detection: Flag addresses with multiple LMIA-seeking companies
- Whistleblower protection: Protect workers who report fraud from deportation
- Public database: Make LMIA approvals searchable so journalists and citizens can investigate
Share Your Investigation
If you have conducted similar investigations into LMIA fraud in your community, this platform exists to give that work a home. Unlike other forums where this content gets suppressed, we believe sunlight is the best disinfectant.
Post your findings in the appropriate sub-forum:
- Shell Companies and LMIA Mills - For documented shell company networks
- Investigation Reports and Evidence - For detailed investigative work
- Immigration Consultant Collusion - For consultant involvement
Note: Please ensure your posts are factual and evidence-based. This is a space for legitimate investigative journalism, not speculation.