American mortgage giant Fannie Mae has reportedly fired around 200 employees — a majority of them Telugu-speaking Indian-Americans — on “ethical grounds” linked to a donation-matching scam. The mass layoff is part of a broader restructuring that saw 700 employees let go.
As per a report published in The Times of India, the dismissed staff allegedly collaborated with nonprofit groups — some linked to the Telugu community — to fake donations under Fannie Mae’s matching gift programme. These falsified contributions triggered company matches, diverting corporate funds under the guise of charity.
Several fired employees were reportedly associated with major Telugu organisations in the U.S., including TANA and ATA. One held a regional VP role in TANA; another was married to a former ATA president. However, sources say other associations are also under scrutiny.
Indian-American Congressman Suhas Subramanyam has launched a probe into the firings. “These employees deserve due process,” he said. “Fannie Mae must explain its actions to Congress and the American people.”
This isn’t an isolated incident. Earlier this year, Apple fired around 50 employees, including some Indians, for allegedly inflating their pay via a similar fraud scheme involving false donations and charity match abuse.
In both cases, the core tactic appears the same: donations faked, matching contributions claimed, and refunds quietly returned. As investigations deepen, concerns are growing that the scheme may be more widespread than initially believed.
