US-based financial company Fannie Mae has allegedly laid off 200 Indian-American employees from its team, with the majority of them linked to Telugu groups on ‘ethical grounds’ after a donation scam, reported the news portal Times of India on Wednesday, April 16.
Along with the 200 people who were laid off due to the ‘ethical grounds,’ others were also subject to a job cut. The news portal’s report alleges that a total of 700 employees were fired from their jobs amid an ongoing restructuring, this number includes the 200 people who were fired on non-restructure reasons.
The news portal’s report also cited the company, which said that the layoffs, which occurred on Wednesday and Thursday, were on ‘ethical grounds.’
Earlier on April 8, 2025, the company acknowledged that they laid off more than 100 people for “unethical conduct” which includes the facilitation of fraud.
“I would like to thank Director Pulte for his empowering of Fannie Mae to root out unethical conduct, including anyone facilitating fraud. We hold our employees to the highest standards, and we will continue to do so,” said Priscilla Almodovar, President and Chief Executive Officer of Fannie Mae in an official statement.
Donation Scam
The company allegedly fired those employees over reported irregularities and misuse of Fannie Mae’s ‘matching grants program’ according to the news portal’s report.
According to multiple media reports, this grant is an extension of the employee’s salaries and acts as a compensatory gift to what the employee donates under the matching gift programme.
The employees who were fired allegedly collaborated with non-profit organisations like the Telugu Association of North America (TANA) and falsified the donations to exploit the program in order to gain access to company funds, as per an India Today report.
One of the employees who were laid off was reported have held the vice president position at TANA, while another employee was at former president of the American Telugu Association (ATA).
People aware of the development told the news portal that TANA is not the only non-profit organisation involved in the issue, allegedly other associations were also under investigation.
“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,” said Indian-American Congressman Suhas Subramanyam on April 9, as per the India Today report.
He supported the employees and asked for an “immediate” explanation from the company, and said that they deserve the due process, according to the report.