After getting their way to YC, the founders hired two fresh H1s from India, with no internal advertisement [that's not legal]. That resulted in a significant change in negotiating power with early employees. The company went from 33% Indian into 100% Indian in 3 months.
Tried reporting this as an ethics violation to YC, no one cared. Didn't bother to report to INS, that would have caused problems to the hires and they were not the ones responsible for lies and fraud.