Sure, but those companies will get spotted and the H1-B
applicants won't work for them. It's easy to hide that you're an H1-B sweatshop and blame the government when you don't have to answer anything for 5+ years. It's not so easy to hide when 12 months is your limit.
People want to be part of the H1-B program so that they can get out of it--either by green card or by going back to their native country with training that makes them more profitable back there.