US Citizenship and Immigration Services (USCIS) has released new guidance clarifying that petitioners and applicants can no longer avoid fraud or willful misrepresentation findings by withdrawing an immigration benefit request. The guidance follows a precedential decision, Matter of TEXPERTS, Inc., issued by the USCIS Administrative Appeals Office (AAO) on March 6, 2026, and incorporated into agency policy on March 9, 2026.
Key Takeaway: Withdrawal Will Not Prevent a Fraud Determination
In its new leadership guidance, USCIS explains that officers may issue a “finding of fact” concluding that a petitioner or applicant attempted to obtain an immigration benefit through fraud or willful misrepresentation, even after the individual withdraws the application or petition. The agency formalized this authority in light of Matter of TEXPERTS, Inc., which held:
USCIS officers are permitted to make findings of fraud or willful misrepresentation after a benefit request is withdrawn, and may rely on those findings in future adjudications.
This represents a significant change for stakeholders who previously withdrew filings to avoid the consequences of a fraud allegation.
Why This Matters
1. Fraud Findings Can Be Used Against Future Benefit Requests
USCIS notes that memorializing these findings in the record will allow officers to use them when adjudicating future employment‑based or family‑based petitions, potentially resulting in denials or inadmissibility determinations.
2. Closing a Long‑Used Loophole
Because USCIS typically must issue a notice of derogatory information before denying or revoking a benefit, many petitioners historically chose to withdraw rather than contest a suspected fraud issue. TEXPERTS clarifies that the withdrawal itself no longer shields the individual from the agency’s fraud analysis.
3. Revisiting Prior Precedent
The decision limits the impact of Matter of Cintron (BIA 1976), which previously held that a withdrawal prevents officers from denying the case. TEXPERTS makes clear that while withdrawal may halt adjudication, it does not bar officers from making factual findings of fraud.
Guidance to USCIS Officers
The March 9 policy update instructs officers to:
- Use the terms “fraud” and “willful misrepresentation” with precision and specificity.
- Apply the same standard used in admissibility determinations when assessing fraud or misrepresentation in petitions.
- Prioritize findings of willful misrepresentation, which require fewer elements to prove compared to fraud.
Broader USCIS Efforts to Address Fraud
The AAO decision and the corresponding guidance come as USCIS intensifies scrutiny across multiple benefit categories, including the H‑1B program. The agency has publicly committed to addressing irregularities and fraud schemes in the H‑1B registration process as it transitions to a new weighted selection process designed to curb “gaming” of the lottery.
The TEXPERTS decision reinforces this enforcement posture by allowing USCIS to preserve findings even if a petitioner attempts to exit the process through withdrawal.
Implications for Employers and Applicants
- Withdrawal no longer eliminates risk. Petitioners and employers can still face fraud findings even if they withdraw filings early in the process.
- Long‑term consequences are substantial. Fraud or misrepresentation findings can trigger visa denials, inadmissibility, and bar future filings across employment‑based and family‑based categories.
- Greater need for early issue‑spotting. Employers should evaluate filings carefully for accuracy and consistency, especially in H‑1B registrations and cap‑subject scenarios.
EIG recommends that employers consult counsel before withdrawing a petition where fraud‑related allegations have been raised or may be anticipated.