Capital One’s Indian Kickback Machine and How it Works
The scheme is incredibly simple and profitable: Capital One managers steer contracts to a tight circle of preferred bodyshops, the list of which includes GC Services, NextSource, Apex, Pyramid, Artech Information, Astyra, Diversant, Ascendion, Pride Technologies, ENGEN, and more. These firms then subcontract the actual staffing to another layer of obscure, Indian-run LLCs clustered in the Richmond-Glen Allen area, including
Artifiction LLC,
Intellect Technologies,
Global Sumi Technologies Inc.,
Arka Technologies, Rising Tides Solutions LLC, and many more
(SEE UPDATE BELOW). These sub-vendors are allegedly run by relatives, college buddies, or close associates of the Capital One directors who are signing the deals. Capital One directors Ranjit Kasanaboina, Srini Vasamsetti, Ganesh Kandula, Satish Kesiboyana, and others are implicated in the scandal.
The theft works like so: a contractor billed to Capital One at a rate of, say, $120-160 per hour may only get paid $60-70 an hour. The remaining $50-90 is split, with part of it going to the primary bodyshop, part going to the sub-vendor, and part kicked back to Capital One managers in the form of cash or laundered payments.
This process has accelerated the displacement of American workers from Capital One. Countless teams have seen Americans with decades of experience inexplicably laid off or reassigned only to see their positions filled weeks later by H-1Bs who routinely exaggerate or outright lie about their previous employment and skills. Labor condition applications are allegedly doctored to show false job conditions, including false descriptions of roles and worksites, evading Department of Labor scrutiny while the real money is sent offshore or into personal accounts. A former Indian-American intern at Capital One
sheds further light on this:
My source claims Capital One’s own leadership may also be complicit in burying complaints in order to protect this kickback network. I have written about the corrupt nature of Indian bodyshops
here. This Indian mafia scheme is a clear conspiracy to defraud Capital One and represents a catastrophic breach of trust, flagrant violations of business ethics, and potential federal labor law violations.