Large American Inc. is a large company we all know off and which is always somewhere on the front page for some news. Mr X is a manager there how arrived from India on H1B and now perhaps has a green card.

Mr. X brings his younger brother Mr. Y on F1 visa. Mr. Y then joins a consultancy. Consultancy claims Mr. Y has 8 years of experience, knew AngularJS before it was invented (true story) etc. and submits it to Large American Inc. for a project that Mr. X is spearheading.

The consultancy then send a proxy for phone screen and real interviews. The consultancy, Mr. X and Mr. Y all pull a lot of strings here. favours are exchanged.

Mr. Y then joins Large American Inc. as a consultant with a salary of $120K under Mr. X.

Mr. X and Mr. Y conceal the fact that they are closely related.

In many cases consultancy hires another person in India whose job is to give 24x7 phone support whenever Mr. Y has to do his work. Screenshare etc.

This is a gross oversimplification of the problem. Do you know how difficult it is to fire a person? Do you know how much it costs to hire someone? You've given this person a relocation bonus, possibly put in the work to set up a visa, given the first chunk of a signing bonus....