Golden Qi Holdings, LLC is a North Texas company now facing a state civil lawsuit after Texas Attorney General Ken Paxton filed suit on May 12, 2026, alleging the company and its owner operated fake childcare businesses to fraudulently obtain H-1B work visas for foreign employees.
The case is part of the OAG's wide-sweeping investigation into nearly 30 North Texas businesses suspected of abusing the H-1B visa program. Golden Qi Holdings is the first company in that investigation to face a formal lawsuit. The defendant in the case is also Yuan Yao, a citizen of the People's Republic of China who owns and manages the company.
Empty Buildings, Overgrown Playgrounds
At the center of the allegations are two businesses: Allen Infant Care Center, listed at an Allen, Texas address, and DFW ABA Center. Both companies maintain websites advertising childcare and behavioral therapy services. According to the OAG, those services do not exist.
Blaze Media reporter Sara Gonzales visited the address listed for Allen Infant Care Center and found no childcare operation. Instead, she found an empty building and a playground overgrown with vegetation. An individual familiar with the property told Gonzales the facility had not operated for an extended period and alleged that Yao "sells visas." The same individual claimed Yao's father works for the Chinese government and sends him significant amounts of money.
Subsidies Collected, Licenses Missing
The lawsuit alleges Yao received both federal and state childcare and business subsidies for his childcare entities but used "none of it" for actual childcare services. He also allegedly lacks proper licensure to operate any of the childcare facilities he advertises. Multiple businesses controlled by Yao list the same vacant Allen, Texas address as their place of operation.
By advertising legitimate-looking childcare businesses, the scheme was designed to use those entities as sponsors for H-1B visa petitions, allowing the filing of applications for foreign workers under the pretense of employing them at childcare facilities. H-1B sponsorship requires a legitimate employer-employee relationship at a real worksite.
Legal Basis and Penalties Sought
Attorney General Paxton is bringing the lawsuit under both the Texas Deceptive Trade Practices Act and the Texas Human Resources Code. The suit seeks to halt the defendant's ongoing illegal activity and to recover up to $10,000 for each individual DTPA violation.
"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."
What Comes Next
The OAG has indicated the Golden Qi Holdings lawsuit is not the end of the investigation. With nearly 30 North Texas businesses under scrutiny for similar suspected fraud, additional lawsuits are possible. The full petition in the Golden Qi case is publicly available on the OAG's website.
This story is part of our ongoing coverage of Texas fraud and public-interest investigations. If you have information about H-1B abuse, fake businesses, or visa fraud operating in North Texas, you can contact our investigative desk securely here. Alfonso C. has also reported on the Bexar County towing bribery conviction and the CAM Solar consumer fraud lawsuit.