Whistleblower's Lawyer Turns up the Heat on Infosys

Don Tennant

The attorney for Infosys employee and whistleblower Jay Palmer on Tuesday filed an amendment to Palmer's lawsuit against the company, in which he outlined additional steps Infosys has taken to harass and retaliate against Palmer since he began cooperating with the federal authorities who are conducting the criminal investigation of Infosys.


The attorney, Kenny Mendelsohn, filed the amended complaint in the U.S. District Court for the Middle District of Alabama, where the case is slated to go to trial in August. In his motion to amend, Mendelsohn explained that the amendment "sets out additional facts supporting Mr. Palmer's claims for wrongful conduct by Infosys since the filing of this lawsuit and since Infosys learned that Mr. Palmer was cooperating with Federal Criminal authorities investigating with Infosys and cooperating with the United States Senator Charles Grassley and the Senate Judiciary Subcommittee on Immigration, Refugees and Border Security." Mendelsohn also made it clear that he had "advised Infosys' counsel of these additional facts and gave Infosys the opportunity to question Mr. Palmer about these facts during the deposition of Mr. Palmer held on February 3, 2012" (see my post, "Infosys Flounders, Deposes Whistleblower Despite Dismissal Motion").


Here is the full text of the amendment to the lawsuit:

33A. After the filing of this lawsuit, Infosys learned that Mr. Palmer had retained on his laptop emails, screenshots and other evidence of Infosys' criminal activities and learned that Mr. Palmer was a cooperating material witness in ongoing Federal criminal investigations of Infosys led by the State Department and Department of Homeland Security. Infosys then increased its harassing, retaliatory, intimidating and outrage tactics against Mr. Palmer, including, among other things, the following:


A. Infosys, through its criminal defense lawyer, threatened to discipline or fire Mr. Palmer if he did not turn the laptop, which the Federal investigators needed as evidence, over to Infosys;
B. Infosys' employees tried to remotely access the laptop;
C. Infosys put Mr. Palmer "on the bench" in April 2011, meaning he has not been assigned to any project which is causing Mr. Palmer to lose bonuses and other compensation;
D. Infosys completely shut Mr. Palmer out of Infosys' system limiting his access to company information;
E. On July 26, 2011, at U.S. Senator Charles Grassley's request, Mr. Palmer submitted a written statement to the Senate Judiciary Subcommittee on Immigration, Refugees and Border Security which was presented and filed at the Hearing on "The Economic Imperative for Enacting Immigration Reform." When Infosys learned that Mr. Palmer was cooperating with Senator Grassley, a strong supporter of Americans' right to work, and had submitted a statement regarding Infosys' illegal conduct, Infosys and Paul N. Gottsegen, Chief Marketing Officer of Infosys, issued public statements which were published across the world falsely accusing Mr. Palmer of being a liar and a fortune-hunter and falsely claiming Mr. Palmer's Senate Statement was "full of inaccuracies, exaggerations and falsehoods;" and
F. Mr. Palmer has received death threats from Infosys employees and Infosys has failed to take any actions to protect or support Mr. Palmer as required by Infosys' Whistleblower Policy.


33B. Infosys has a pattern and practice of punishing employees who report criminal conduct and rewarding employees who go along with illegal activities. Among other things, certain Infosys employees who refused to cooperate with the Federal authorities investigating the crimes have since been promoted and received raises while Mr. Palmer and other Infosys Whistleblowers who reported crimes were subjected to harassment, retaliation and outrageous conduct.

Although there's nothing in the amended complaint that I haven't already reported in this blog, having this damaging, embarrassing information recorded in court documents no doubt puts significantly more pressure on Infosys, and likely makes it even more evident to Infosys' executive team that this problem isn't going to go away. They would be well advised to end the retaliation now, and avoid giving Mendelsohn yet more fodder for his case. If Mendelsohn has to file another amendment between now and August to detail more egregious behavior on the part of Infosys, the company's employees, customers and shareholders will have very good reason to be even more worried.

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Feb 15, 2012 12:10 PM George Alexander George Alexander  says:


Maybe I missed it but what are all the charges against Infosys? And did Mendelsohn ever share what the consquences could be for Infosys if they are found guilty in any or all the charges?


Feb 15, 2012 12:25 PM Don Tennant Don Tennant  says: in response to George Alexander

In Palmer's civil suit there are 6 charges against Infosys, one having to do with breach of contract and 5 having to do with harassment, retaliation, and the failure of Infosys' whistleblower team and HR staff to protect Jay. The consequences for Infosys in the civil case are strictly monetary damages. That's why Infosys is far more concerned about the feds' criminal investigation of visa and tax fraud (what Palmer reported in his Whistleblower complaint) -- that could lead not only to huge monetary fines, but to sanctions and possible criminal indictments of individuals.

Feb 15, 2012 12:51 PM George Alexander George Alexander  says: in response to Don Tennant

ah ok. The latter part is probably what Infosys fears most because they have enough money to pay any monetory compensation.

Feb 15, 2012 3:02 PM Don Tennant Don Tennant  says:

Quick update: The court granted Mendelsohn's motion to amend the complaint this afternoon, and gave Infosys five business days to file an objection if it objects.

Feb 15, 2012 6:45 PM Amit Arora Amit Arora  says: in response to Don Tennant


U.S. District Judge James Moody sentenced Ravinder Reddy Allala to 40 months in federal prison for visa fraud and conspiracy.

Laconia Associates Inc., a Tampa information technology consulting firm and employee leasing company operated by Allala, submitted fake H1B visa applications for Indian nationals between 2006 and 2010, a statement from the U.S. Attorney for the Middle District of Florida said.

The H1B visa program allows U.S. employers to temporarily employ foreign workers in specialty occupations, which cannot be filled from within the United States by a U.S. citizen.

Allala submitted the bogus visa applications under a fake name and in many instances, also listed a fake workplace for the aliens, the statement said.

Feb 16, 2012 9:35 AM Truth Truth  says: in response to Amit Arora

Another Goolt busted by the Feds. Good work USCIS and DoL. Most of these Goolts in IT are frauds to the core. These guys have to be sent out of America and that day is soon coming!

P S: Who is a Goolt? A Goolt is someone from the Great State of Satyam Computers in India.  80% of these guys are total fraudsters in whatever they do. That America is having to put up with these guys is a shame indeed!

Feb 16, 2012 10:04 AM alpha alpha  says: in response to Rahul Redkar

Hi User2002023,

I wont go make a comparision between indians n americans, everybody has his own lifestyle and there's no good or bad in both lifestyles its just different.

Don talks about patterns, so if we observe patterns we will only see rants with no substance or evidence to support it.

@don, if you think you are correct and have evidence to support it why dont to take this evidence to courts/bring it to public notice(not just blogging but bring out proofs to support you).

i'm sorry to say but i have not found out a single concrete evidence to support what you say in the blogs, and when people after reading you comments say that "why isn't american media reporting it" the answer is simple reporters and journos are responsible enough to present a news article to the public only when they have enough evidence.

Feb 16, 2012 10:06 AM IAmNumber813 IAmNumber813  says: in response to George Alexander

"ah ok. The latter part is probably what Infosys fears most because they have enough money to pay any monetory compensation."

I don't think this statement is entirely true (if Infosys does believe its true, then they should definitely change law firms).

Infosys is behaving like a poker player with a strong hand (which they clearly do not have). Besides "monetary compensation", Infosys could be facing a court ordered consent decree whether the civil case goes to trial or is settled.


Federal judges in the U.S. have a significant amount of judicial power to act independently and there are federal judges that have refused to sign off on settlements between the parties. A court ordered consent decree in the civil case could, in the worst case for Infosys, go as far as barring Infosys from having the privilege of receiving any visas in the U.S., either permanently or temporary. It's somewhat puzzling why Infosys' lawyers could allow Infosys to get into a civil case that has this much negative downside potential (and with a pending criminal case looming in the background). There are prior examples where court cases have resulted in major companies shutting down (i.e., Napster).

Of course, there are many of us American IT professionals that would not feel bad about Infosys being barred from receiving foreign worker visas in the U.S.

Feb 16, 2012 11:49 AM DaTruth DaTruth  says: in response to IAmNumber813

Great news, Don! Will be interesting to see the outcome. Has Senator got support? Is he powerful enough?

Why there is not media coverage in major papers? Can we make it a theme for the elections and get more political clout?

Feb 16, 2012 1:48 PM Rahul Redkar Rahul Redkar  says:

I agree with you aplha.

Lets take a case where every product or service in America is produced or delivered by using the so called highly paid Americans. Do you think that Americans themsleves would be able to afford it?

Secondly Indians work hard day in and day out. We dont party every weekend and blow up money unlike the Americans.

First learn to put in more effort and then talk.

Thirdly All the American biggies are also outsourcing. Are you going to charge them too?

Feb 16, 2012 2:18 PM George George  says: in response to Don Tennant


I have read some of your blogs. The blog titles are always sensational, but I have always been disappointed with the content. The same rant, nothing new. Anyways, keep going.

Feb 16, 2012 5:10 PM Dolores Dolores  says: in response to Rahul Redkar

Indians don't blow up money? Don't party? Have you never been to an Indian wedding or festival?

Feb 16, 2012 6:54 PM SP SP  says: in response to Rahul Redkar

Are you kidding me! You should visit our neighborhood then- We have atleast two Indian parties in our clubhouse every week! And you should see the display there- The clothes, the jewelry, the catered food! Less than 20% of the households are of Indian origin (Most of them are US Citizens), and they account for almost 90% of the Club house parties!

But coming back to the issue at hand, I doubt that a reduction in the number of visas will lead to more Americans getting hired: It is more likely to lead to even more jobs moving to India or Brazil or where ever!

Feb 16, 2012 7:02 PM SP SP  says: in response to IAmNumber813

I wonder if any of the Biggies in Infosys will actually take the rap for this. If what Don says is true, all the guys who went along with this system did very well for themselves, and are sitting in India- They don't have anybody who has any real power to make policy here, that's for sure! So, in all likelihood, some mid-level guy will take the fall. Does that change anything? Will we end up prosecuting people who simply were in the wrong place, and let the ones who made the actual call sit comfortably in India? Can they be extradited? Does anyone know?

Feb 16, 2012 7:38 PM Don Tennant Don Tennant  says:

Response to Alpha: I am deleted your comment because it contains a personal insult and vulgarity. Take it someplace else. It isn't wlecome here.

Feb 16, 2012 8:45 PM Jerome Thorson Jerome Thorson  says: in response to IAmNumber813

I'm guessing that InfoSys lawyers probably thought the US Government wouldn't do anything about it. I suspect the biggest problem for Infosys, as for all companies violating the US immigration policy (such as it is), would be to lose whatever reputation they had, and essentially be shut out of the market. 

Feb 16, 2012 8:50 PM Jerome Thorson Jerome Thorson  says: in response to Rahul Redkar

If you want to see Indian extravagance, come to Dubai.  They live very large, golf memberships at very expensive clubs, serious huge parties, yachts, beach club memberships, etc.  Personally, I'm happy they can do it, but to say they don't waste money is naive. 

Feb 19, 2012 11:10 AM aditya aditya  says:

trust me Don, you are so badly off reality that you will not know what hit you - when it hits you.

a) Infosys has a visa, tax fraud case: LOL !!!!!! A falsehood your blog has been spreading - outsourcing companies - including ibm, hp, accenture, infosys, wipro etc use H1 and L1 legally to service their clients in US. The people who come on H1 are paid the US salaries and they pay TAXES THAT THEY NEVER GET THE BENEFIT OF 'cos they leave the country. These taxes run into HUNDREDS of billions of dollars (and yes, we can argue about the number separately) - Indian H1 visa people have been paying  taxes that takes care of uneducated americans who cant get a job

b) the unemplyment numbers  - if u look at them seriously - is amongst non college people - those who have a masters in technology of any sort - will be lower than 4%

c) there isan overall growth in US job - if india does well _ cos if india buys more dells, more levis, more u get the drift _ its good for US

Feb 19, 2012 5:35 PM SealTeam6 SealTeam6 SealTeam6 SealTeam6  says: in response to aditya

The people who come on H1 are paid the US salaries and they pay TAXES THAT THEY NEVER GET THE BENEFIT OF 'cos they leave the country.

I see. So you are saying they never drive on public highways, visit public parks, beaches and recreation spots, use public libraries and other facilities while in the US ? How do you think the government pays for the creation and maintenance such infrastructure ? Nothing is free.

Feb 20, 2012 2:09 PM health insurance health insurance  says: in response to SealTeam6 SealTeam6

I think the point he was trying to make is that they see less in return for their contribution than people who permanently reside in the country do. While this probably won't be true for all cases, it probably is for the majority.

I disagree with point c though, if India buys more Dells, Levis etc then eventually these companies will look to maximize their profit by reducing their costs and moving production to the next "land of opportunity".

Feb 20, 2012 7:35 PM George Alexander George Alexander  says: in response to aditya

a) yes, Infosys does have a visa, tax fraud case which include allegations that they brought people on a business only B1 visa and made them 1. work and 2. had them billed and 3. did not pay taxes for the revenue. All three are illegal. You need to read news papers a bit more.

c) this need not be true in the case of regular blue collar workers when everything .i.e the dells, levis etc is produced in countries like China, India, East Asia etc. Yes, it builds up the stock value of the company (benifitting share holders) and gives the company access to more markets. You probably just need managers, accountants and few other skilled workers for running domestic and international operations leaving out blue collar workers. This is the reality of globalization where people start competing at an international level. Developing countries were initially at a weaker position to stem the tide of globalization but they adapted and used it to their advantage. This being a good thing or a bad thing is another discussion. Right now, every person needs to use it to their advantage because globalisation can't be undone. There are some who are disadvantaged (economically, educationally etc). The government has the responsibility to ensure that disadvantaged people get every oppertunity to compete and people have a responsibility to use every oppertunity they get.

Feb 20, 2012 8:22 PM SealTeam6 SealTeam6 SealTeam6 SealTeam6  says: in response to health insurance

I think the point he was trying to make is that they see less in return for their contribution than people who permanently reside in the country do.

Name one country that has a system that benefits non-residents the same way it rewards its own residents/citizens. I daresay the US is far more lenient than most nations.

Feb 21, 2012 11:25 AM Anonymous Anonymous  says:

H1B - 3rd party placement - (Sub-contracting).

3rd party placement of H1b candidates (without Employer - Employee relationship)is a violation according to DOL. Every company is violating this clause.

Please make sure to inform DOL or ICE if you see any H1B candidate in your organization, sub-contracted via third party.

Very few of them know about this violations. Please google it and read more about this violation.

Feb 21, 2012 11:31 AM Anonymous Anonymous  says: in response to SealTeam6 SealTeam6

Well, if H1B candidates don't get benefits for the taxes they pay, then why are they coming to US. No one has forced them. They can stay in their own country.

Feb 21, 2012 11:41 AM Anonymous Anonymous  says: in response to Rahul Redkar

This is what the CEO writes to all the hard(ly) working employee


It's half past 8 in the office but the lights are still on

PCs still running, coffee machines still buzzing

And who's at work? Most of them ??? Take a closer lookAll or most specimens are ??

Something male species of the human race

Look closer again all or most of them are bachelors

And why are they sitting late? Working hard? No way!!!

Any guesses???

Let's ask one of them

Here's what he says. What's there 2 do after going homeHere we get to surf, AC, phone, food, coffee that is why I am working lateImportantly no bossssssss!!!!!!!!!!!'

This is the scene in most research centers and software companies and other off-shore offices.

Bachelors Passing-Time' during late hours in the office just bcoz they say they've nothing else to do.

Now what r the consequences

Working' (for the record only) late hours soon becomes part of the institute or company culture.

With bosses more than eager to provide support to those working' late in the form of taxi vouchers, food vouchers and of course good feedback, (oh, he's a hard worker.. goes home only to change..!!).

They aren't helping things too

To hell with bosses who don't understand the difference between sitting' late and working' late!!!

Very soon, the boss start expecting all employees to put in extra working hours.

So, My dear Bachelors let me tell you, life changes when u get married and start having a family office is no longer a priority, family is and

That's when the problem starts b'coz u start having commitments at home too.

For your boss, the earlier hardworking' guy suddenly seems to become a early leaver' even if u leave an hour after regular time after doing the same amount of work.

People leaving on time after doing their tasks for the day are labelled as work-shirkers.

Girls who thankfully always (its changing nowadays though) leave on time are labelled as not up to it'. All the while, the bachelors pat their own backs and carry on working' not realizing that they r spoiling the work culture at their own place and never realize that they would have to regret at one point of time.

So what's the moral of the story??


  • Very clear, LEAVE ON TIME!!!


  • Never put in extra time unless really needed


  • Don't stay back unnecessarily and spoil your company work culture which will in turn cause inconvenience to you and your colleagues.

There are hundred other things to do in the evening..Learn music..

Learn a foreign language

Try a sport TT, cricket..

Importantly,get a girl friend or boy friend, take him/her around town

  • And for heaven's sake, net cafe rates have dropped to an all-time low (plus, no fire-walls) and try cooking for a change.

Take a tip from the Smirnoff ad: 'Life's calling, where are you??'

Please pass on this message to all those colleagues and please do it before leaving time, don't stay back till midnight to forward this!!!




Feb 21, 2012 12:17 PM hoapres hoapres  says: in response to Anonymous

Once we get salaries down to ZERO with unpaid internships, etc. then you won't need H1Bs. 

Feb 21, 2012 12:23 PM Anonymous Anonymous  says:

Mail from Infosys CEO to employees


Feb 22, 2012 5:41 PM SP SP  says: in response to jake_leone

The difference between the Auto-Bailout and the Wall Street Bailout is very simple: With the former, we helped out PRODUCERS; with the latter, we tried to bolster SPECULATORS/ GAMBLERS- Investors is hardly a word you can use to describe Wall Street today. Detroit has something to show after that investment because they actually produce cars,trucks, you name it. What does WS do with the money handed out to them? Well, they paid huge bonuses, from what I understand, and the rest, they probably claim as a loss in the "investments" they made to "revive" the economy. The Auto industry had to SHOW where the money was going- whereas all WS had to do was blame a bad economy. One thing I had to appreciate about John Huntsman: Regulate so no organization becomes "Too Big to Fail". We have deregulated the industry for fear of choking the economy, but the result has been that the American worker has been stiffed, and as he is the consumer, the economy is down the drain anyways!

Feb 22, 2012 8:19 PM jake_leone jake_leone  says:

When Tech companies compete, people get hired.

When workers compete, people get laid off.

Simple as that.

Let the workers go back to their home companies and start SAPs, Sony's, Toyotas.  In ten years they will be back in U.S. hiring Americans to bolster their product line with culturally relevant goods.

Right now Tech companies Oracle, IBM, Apple are awash with cash.  The only thing that gets these companies to spend is competition.  The fact that these companies are saving money, means there is no real competition, they are not motivated to produce and improve at the rate they could.  Apple makes 1.7 million dollars per employee.   Many tech companies routinely make 400k per employee.  At that profit rate, mass layoffs don't make sense, allowing them to salt away billions also makes no sense.

The consumer and worker are both getting ripped off.

In a profitable environment, when one company adds features/products/capacity the rivals companies will do the same, and in doing so bolster the economy, the consumer (most certainly), and the worker.  Tech companies are very profitable, what they need is more competition at the corporate level.

If engineer A makes at company A 400,000 dollars a year, and earns only 80,000 dollars a year, by what possible sense does it make to fritter over over an extra five or ten thousand dollars?  None, in fact allowing companies to have such options only slows them down, slows down progress.  It creates a condition where managers get gold stars not by producing more, but by wasting tremendous opportunity cost and cutting the wages by amounts that are unjustifiable (when viewed on larger time-to-market scale).

From a national perspective, allowing companies to get cheap with their employees also makes no sense.  Allowing companies to use 18,000 visas last year to outsource whole departments (at a time of heavy unemployment, and high profitability) makes no sense, and should be sensibly stopped.  For the good of all economies. 

Our unemployment level could be at 5% if we stopped allowing our Corporate-Welfare-visa to allow jobs to hemmorage from our economy to overseas locations, where they simply copy us.  When the overseas locations could well be designing, competing, and innovating.  Forcing a friendly competition that will spur employment in all nations.

The Japanese didn't put up with just copying us, they competed, and as a result many Japanese companies not only employ people in Japan, but also employ people around the world, including the United States.

The Conservative economists were almost totally wrong about most of the last recession, it wasn't a Darwinian struggle between companies.  It was a Darwinian struggle between economies (and a foolish one at that), and we almost became extinct.  Detroit is back, with a vengeance.  Every job at GM generates 9 other local jobs, a net U.S. employment of 3 quarters of a million people.  GM made 7 billion last year, not bad for a bailout, and better than any jobs bill could have ever done.  Better than the Wall Street bailout in terms of direct jobs saved/created.

Feb 22, 2012 8:30 PM ummm, obvious ummm, obvious  says: in response to jake_leone

Or in short, at the end of the day, you want a job with a good salary and everything will be fine.

Feb 23, 2012 9:48 AM Arun Arun  says:

Infosys is quiet immature in handling internal complaints. They still have an ingrained feudal system in their behaviors.  In my experience with Infosys the general expectation is that one should be scared of their boss and if he or she says something you are expected to finally follow it. Not doing so risks you getting into trouble.

The HR is so unprofessional. If one escalates a potential wrong doing of ones supervisor,  to them then instead of maturely handling it they get your supervisor to talk to you. No confidentiality is maintained in such discussions. How unethical and unprofessional. How can they even talk about the highest standards of ethics.

Feb 23, 2012 10:49 AM kiprn kiprn  says: in response to jake_leone

Even now with all the visa based jobs, unemployment is ~4% in Tech sector. The actual unemployment rate in quite high for other sectors. So somebody saying that outsourcing is the main reason for unemployment, need to get their facts right. But its true that it had impacted to a greater extent.

As anonymous mentioned, 3rd party placements/subcontracting of H1B holders should be prevented through proper checks and balances in DOL. I think there was some change in the Visa regulations, but that was for fresh visa or renewals. In many cases, the US companies itself will be sub-contracting through placement vendors even though they will be aware that this is inappropriate as the sub-contractors will directly report to the client and not to their actual Employer. These are true cases of body shoppers. Somebody calling a TCS, Infosys, IBM, CTS or MS as body shoppers also need to understand this difference.

Feb 23, 2012 7:35 PM Jake_Leone Jake_Leone  says: in response to kiprn

You can't compare engineering unemployment to general labor.  Engineers are generally very conservative and have a strong work-ethic.  An unemployment rate of 1% or 2% is what it should be (and there have been years, mostly late 90's where it was that).

Further, engineers often make above average salaries and so support many side jobs (perhaps a gardner, auto-mechanic, local restaurant...).  So that an engineer may support 4 other workers in the general economy.

18,000 visas were used by outsourcing companies, last year. 

"3rd party placements/subcontracting of H1B holders should be prevented through proper checks and balances in DOL".

Should does not equal Must, Should means it can go either way, which indeed it does.  No country would allow their Visa system to be used to ship jobs offshore, except apparently the United States.

When workers compete for jobs, that is called unemployment.  When business compete, people get hired.  What I am saying is that by giving our industry access to people on a Visa, we are prolonging the unemployment in this country, because there is no motivation to rehire and re-train local workers.

Look, I don't have an Engineering Degree, but currently every day I program in Java.  I work on servers and GUIs, some I have designed and are maintained and sold by my company.  I have been programming (C++ earlier) for 20 years, near steady employment.  One thing is very true about programming, most jobs take only Algebra and Statistics.  If you can do the Quadratic equation, you likely (with training) are capable of doing programming, and we learned that in high school in the U.S.  Many starting jobs (like the one that got me going), are taken by people on Visa, and so many trainees are locked out because too many workers are competing for the starting jobs.

Yes, if you know Linux admin (and come on that's a 3 month training program), there are companies that should be able to place you.  But how low can you go?  Because workers are competing for jobs, not companies competing for workers. 

Companies have no motivation to train you.

Mar 7, 2012 4:43 PM Whistleblower Attorney Whistleblower Attorney  says: in response to Arun

I think I can agree with that. The feudal system has resulted from employees who have lesser labor laws on their side in their parent country viz. India. They haven't really developed a global mindset just yet. Give them time I say!

Mar 25, 2012 6:41 PM jrogers222 jrogers222  says:

Infosys covered in CNN


Apr 7, 2012 5:05 PM ion ion  says:

You never know with who you are dealing with.Tax frauds seems to be frequent on many companies.The state should have to do an Background Check especially for those with antecedents.


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