Do people know about fraud by third party IT consultancy companies?

This is just an effort to inform the folks on HN (Future CEOs of big companies :) ) about the routine fraud by many IT consultancy companies with fake resumes and fake phone interviews etc. Since I am from India, I know of many small scale IT companies run by Indians in US which cheat both the clients and the candidates, with these tactics, but I suspect the thing is not necessarily limited to Indian companies. Here is a typical situation: 1. The company recruits students / graduates without any experience promising them training and job placement. They don't need any CS or IT experience whatsoever, but they are promised they can get 60K+ jobs in whatever technology is. 2. The consultancy creates fake resumes for the candidates and starts forwarding them to other consultancies and clients etc. The guys routinely put 5 or 6 years of fake work experience without knowing a thing about the area. 3. Many companies don't pay anything to the candidates while they are being "trained", though they are paid on paper because of the immigration requirements. 4. When it's the time for the phone interview, the guy you are interviewing may not be real candidate. Or he may have a couple of other people also listening in and helping him with written answers. 5. Since it's just a contractor job many big companies don't even bother doing an in-person interview trusting the consulting companies. 6. It's possible that some of the managers in the big companies have indirect associations with these consultancies forcing them to stick to some consultancies despite getting really bad people from them some times. 7. Finally the guy who knows very little about the field will join the big company as a contractor, and the consultancy takes big cut out of his pay check. 8. The employee may get fired easily first few times, but he will gain legitimate US work experience in the meanwhile and the the previous experience becomes irrelevant.