Day 1 CPT and Fake OPT Employers: How Students Lose Status

You have clearly decided that a US degree is worth it, and now you want to know which work shortcuts could cost you your status. This page is for F-1 students who read the rules before they sign.

F-1 students can work in the US through Curricular Practical Training (CPT) during a course and Optional Practical Training (OPT) after it. Both are legal. The traps are schools that sell "Day 1 CPT" mainly as a way to work, and companies that sell fake OPT jobs so students can stay. If the training or the job is not real, your status may not be real either, and the record can follow you into a later H-1B or green card application.

In 2026, US immigration authorities said they had "flagged 10,000+ individuals for suspected fraud involving shell companies and ghost offices" in OPT (ICE, August 2026). In the same year, the student program warned schools about "a rise in CPT authorizations that do not meet regulatory requirements" (SEVP, 12 August 2026). That is the short answer. Below are the rules, the documented cases, what can happen to your status and the checks to make.

Imagine you are on OPT. Your 90 days without a job are almost used up. A "consulting company" offers you an offer letter, a training plan and payslips for a monthly fee. You will not have to go to an office. This is a hypothetical, but it describes the business model in several real federal cases.

Key facts

What the rules allow

CPT is work or training that is part of your course. The regulation says it must be "an integral part of an established curriculum". Normally you must study for one academic year first. There is an exception for "students enrolled in graduate studies that require immediate participation in curricular practical training". That exception is what "Day 1 CPT" programs use.

OPT is work after (or sometimes during) your course, in your field of study. "During post-completion OPT, F-1 status is dependent upon employment." You may be unemployed for up to 90 days, or 150 days in total if you have the STEM extension (8 CFR 214.2(f)(10)).

STEM OPT has extra rules. Your employer must be enrolled in E-Verify, must offer at least 20 hours a week, and must sign a training plan, Form I-983. You cannot sign the employer's part for yourself (Study in the States).

One more rule matters: "Students who have received one year or more of full time curricular practical training are ineligible for post-completion academic training." A long period of full-time CPT can cost you OPT.

The Day 1 CPT problem

Some Day 1 CPT programs are real graduate courses with real training. Others are sold mainly to people who want to keep working in the US. In 2024, Bloomberg described some Day 1 CPT degrees as "an elaborate charade to stay in the country legally", run by "a few dozen little-known US schools" (Bloomberg, 3 October 2024). That is a press finding, not a court ruling about any school.

In August 2026, the Student and Exchange Visitor Program (SEVP) told school officials to authorize CPT only "if its absence would make the attainment of a degree an impossibility and if the work associated with CPT is required for all students pursuing that degree". It warned of "potential withdrawal of the school's SEVP certification" if officials abuse CPT "to create work opportunities rather than academic studies" (SEVP, 12 August 2026).

In October 2026, university groups including AAU and NAFSA sued in federal court in Massachusetts to challenge the new CPT interpretation (AAU, 5 October 2026). We could not confirm a ruling as of mid-November 2026. Check the latest position before you enrol in any Day 1 CPT program.

Schools that were not real

Some "schools" were mostly visa businesses:

• Tri-Valley University, California. Its founder, Susan Xiao-Ping Su, was sentenced to more than 16 years and ordered to forfeit $5.6 million. Students paid "about $2,700 a semester" (AP, 4 November 2014).
• Herguan University, California. Its chief executive, Jerry Wang, was sentenced to one year in prison after admitting "submitting over 100 fraudulent documents" (Bay Area News Group, 15 September 2015).
• University of Farmington, Michigan. This one was a fake school run by the government itself, as a sting. Read the full University of Farmington story.

The fake OPT employer business

The business is simple. A company sells you proof of a job that does not exist, so your OPT clock keeps running.

• Findream and Sinocontech (2019). A federal indictment said Weiyun "Kelly" Huang's companies let at least 2,685 customers list them as their employer and that she received "at least $2 million". The scheme sold offer letters, training plans, payroll funded by the students themselves and tax forms (ICE, 26 July 2019). She pleaded guilty and was sentenced to 37 months in prison, according to a later Federal Register notice citing the Justice Department.
• Operation OPTical Illusion (2020). ICE arrested 15 students who claimed to work for companies that did not exist: 11 from India, 2 from Libya, 1 from Senegal and 1 from Bangladesh (ICE, 21 October 2020).
• 2026. The acting ICE director said ICE had "identified over 10,000 foreign students who claim to be working for highly suspect employers", and that this was only among the top 25 OPT employers (Fox News, 13 May 2026).

In March 2026, SEVP listed warning signs it looks for: "Unoccupied and unused business locations", employers run from homes, "offshore" HR and payroll, and students "who never actually showed up for work". It named IT recruitment, consulting and staffing firms as a concern (SEVP, 23 March 2026).

What can happen to you, years later

Some students only learn the cost when they apply for something else.

In 2023, about 70 Indian graduates sued the US government over refused H-1B petitions and visas. They had worked on OPT for companies including Integra Technologies, AzTech, Andwill and WireClass, which their lawsuit said had committed fraud. One was refused for "suspected fraud or intentional misrepresentation" (Economic Times, citing Bloomberg Law, 13 August 2023). These were the students' claims in a civil case. A finding of misrepresentation can bar a person from a US visa. Our guide on misrepresentation bans explains how that works.

Status can also end quickly. In spring 2025, ICE terminated thousands of student records in the SEVIS system. A legal group counted 4,736 by mid-April, and about half of the cases in its own sample were students on OPT (AILA, 17 April 2025). After nearly a hundred lawsuits, the government said those records would be restored (NPR, 25 April 2025). In 2025, some OPT students also received emails saying they had "exceeded their 90 days of unemployment" when they had not (NAFSA, 20 June 2025). Keep your employment details up to date in the SEVP portal.

A new rule published in July 2026 replaces open-ended "duration of status" with a fixed admission period of up to four years (Federal Register, 17 July 2026). Check how it applies to you with your school's international office.

Checks before you enrol or accept a job

Before you choose a school:

1. Find the school on the SEVP school search.
2. Ask in writing: is CPT required for every student in this program, and what happens to students who do not find CPT?
3. Ask how many classes are in person, and where.
4. Ask how full-time CPT will affect your OPT later.

Before you accept an OPT or STEM OPT job:

1. Never pay an employer to employ you. Real employers pay you.
2. Search the company in the state business register and check it has a real office. Visit if you can.
3. For STEM OPT, check the employer is in E-Verify and will sign Form I-983 itself.
4. Be wary of any job where you never meet a manager, never do work, or are paid with your own money.
5. Report suspected fraud to SEVPFraud@hsi.dhs.gov.

If you are not sure, ask your school's designated school official (DSO) before you sign. For advice on your own status, speak to a licensed US immigration lawyer. This page is general information, not legal advice.

Frequently asked questions

Is Day 1 CPT legal?

Yes, if the program is a real graduate course that requires training from the start for all its students. The regulation allows it. In 2026, SEVP said it was increasing scrutiny of CPT that is not truly part of the curriculum, and universities challenged that in court. Check the latest position before you enrol.

Can Day 1 CPT affect my H-1B or green card?

It can. If a later officer decides your study or work was not genuine, they may question your status history. Some students have received requests for evidence or refusals linked to their past schools or employers.

What happens if my OPT employer was fake?

You may be found to have broken your status, because OPT status depends on real employment. In some cases, students were arrested or later refused visas for fraud or misrepresentation. Speak to a licensed immigration lawyer if you think this applies to you.

How many days can I be unemployed on OPT?

Up to 90 days on post-completion OPT, or 150 days in total if you have the STEM extension.

How do I check if an OPT employer is real?

Check the company's registration and address, look for a real office and real staff, and make sure you will do real work in your field. For STEM OPT, the employer must be enrolled in E-Verify. Never pay to be employed.

Where can I report a fake OPT employer or school?

Email SEVPFraud@hsi.dhs.gov. You can also tell your school's DSO.

Related guides

• International Student Scams: How Students Get Duped Abroad
• Student Work Limits and Wage Theft: How Bosses Use Your Visa
• University of Farmington: The Fake University Run by ICE
• Fake College Check: DLI List, CRICOS, SEVP and UK Register
• Fake Job Offer Abroad? How to Check It Is Real
• Five or Ten Year Misrepresentation Ban: What Comes Next