Fannie Mae, the US government-run mortgage finance giant, has reportedly dismissed 700 employees as part of a restructuring move. Among them, around 200 employees of Telugu origin were terminated on ethical grounds. The alleged violations involve irregularities in the company’s matching grants programme, which supplements employees’ charitable donations with corporate contributions.
Allegations of Donation Misuse Surface
Reports suggest that several fired employees collaborated with nonprofit organisations — many linked to the Telugu community — to manipulate the matching grants programme. The now-terminated employees allegedly faked donations or participated in schemes where donations were returned to them, allowing them to retain the matched funds from Fannie Mae. This practice not only exploited company policy but also potentially violated US tax laws.
Community Organisations Under Scrutiny
Several associations are under investigation, including the Telugu Association of North America (TANA). One of the dismissed employees reportedly held a leadership position within TANA, while another was related to a former president of the American Telugu Association (ATA). Sources suggest that these organisations are being probed for their role in facilitating fraudulent donation activities.
Congressman Calls for Accountability
Indian-American Congressman Suhas Subramanyam has publicly called on Fannie Mae to provide clarity and ensure due process. He expressed concern that the employees were dismissed without a full investigation or clear evidence, and demanded that the company be transparent in its dealings with both the affected employees and the public.
A Wider Pattern of Misconduct?
This is not an isolated incident. Earlier this year, Apple dismissed over 100 employees, including several Indians, over similar fraud involving fake charitable donations to inflate compensation. Authorities in California have been investigating such schemes that exploit corporate donation-matching programmes for personal gain.
Conclusion
While investigations continue, these cases raise broader questions about internal controls, community group accountability, and employee ethics in large corporations. A fair and transparent probe will be critical in determining how widespread this issue truly is and how companies can prevent similar abuses in the future.
