Fannie Mae fires 200 Indian-American employees over alleged donation fraud; Telugu nonprofits under scrutiny
PTC Web Desk: In a significant development raising questions about ethical conduct and corporate accountability, Fannie Mae, the United States’ largest mortgage financing entity, has reportedly dismissed around 200 Indian-American employees, the majority of whom are Telugu-speaking professionals, on grounds of ethical misconduct. The alleged violations pertain to abuse of the company’s employee matching donation programme, as reported by The Times of India.
The dismissals are part of a wider restructuring plan that saw 700 employees laid off by Fannie Mae, formally known as the Federal National Mortgage Association. The Washington DC-based entity is a government-sponsored enterprise that plays a crucial role in the US housing finance system. While many of the layoffs were part of organisational changes, a significant number were reportedly linked to fraudulent activity uncovered through internal reviews.
At the core of the alleged wrongdoing is misuse of Fannie Mae's matching gift initiative, a corporate philanthropy programme designed to support charitable contributions made by employees. This initiative typically matches donations made by employees to qualifying nonprofits, effectively doubling their impact.
However, investigations have revealed that several employees may have conspired with nonprofit organisations, including some affiliated with the Telugu community in the US, to falsify donations. In this suspected scheme, employees claimed to have made charitable contributions which were either never actually paid or were returned to them by the nonprofits. Meanwhile, Fannie Mae’s matching contributions were still disbursed, resulting in unauthorized access to company funds.
Sources familiar with the situation indicated that organisations such as the Telugu Association of North America (TANA) and the American Telugu Association (ATA) have come under scrutiny. One of the fired individuals is said to have been a regional vice president of TANA, while another is reportedly married to a former ATA president. However, the investigation is believed to involve multiple nonprofit entities, not just those linked to Telugu associations.
Following public concern, Indian-American Congressman Suhas Subramanyam from Virginia has intervened. On April 9, he publicly demanded clarity from Fannie Mae, stating:
“It has been brought to my attention that Fannie Mae has accused hundreds of my constituents in the Indian-American community of fraudulent behaviour and fired them without conducting a full investigation or providing evidence.”
The Congressman emphasised the importance of due process and called on Fannie Mae to provide a transparent explanation to the employees, Congress, and the American public.
The issue mirrors a similar controversy involving tech giant Apple, which in January 2025 reportedly terminated over 100 employees, including nearly 50 Indians, over a compensation fraud scheme. That case also involved employees exploiting charitable donation programs by collaborating with nonprofits—many reportedly linked to Telugu groups—to create fictitious donations. In turn, these allowed employees to unlawfully boost their compensation via corporate matching and claim false tax deductions.
In connection with that case, the Northern District of California court issued a subpoena in December 2024 to TANA, demanding a detailed breakdown of its finances and donations between 2019 and 2024.
While Fannie Mae has yet to release an official public statement about the mass firings, the developments have sparked concern within the Indian-American diaspora, particularly among the Telugu-speaking communities of Andhra Pradesh and Telangana, which represent a large share of the Indian tech workforce in the US.
- With inputs from agencies
