I am currently working client site for one of India's largest IT service company. In addition to what you have mentioned I would like to add that the fraudulent practices of these desi consultants do not stop at this level. They most of the times put in candidates with fake resumes and are able to push candidates who have very little knowledge or experience. Most of these firms do not have direct clients and route the applications through larger US staffing companies like GCI or Teksystems. Thus for the H1B holder it becomes double taxation since both level of consultants take their cut. Sometimes the desi consultant even genrates false salary slips to evade taxes. I have met folks who have not reeived proper paychecks for months at end. This really cuts a very sorry picture of us Indian IT professionals out here in the US. However the lure of the dollar paycheck is such that people are ready to pay thousands of dollars to get a slice of the pie. I am not at all against H1b professionals or the program ( I being one of the lot) but these firms who are running their little scams out here are not only taking gullible foljs for a ride but also tarnishing the name of our country.