200 Indian-origin employees fired by US giant over alleged donation scam

In a massive shake-up, US mortgage giant Fannie Mae has fired around 200 employees—mostly Indian-Americans of Telugu origin—over allegations of salary-linked donation fraud. The terminated employees were reportedly involved in manipulating the company’s matching gift programme by falsely declaring charitable contributions through affiliated nonprofit groups.

These firings were part of a larger internal restructuring effort that saw 700 employees being laid off. However, the group of 200 stands out due to the nature of the allegations: misusing Fannie Mae’s charity-matching scheme to claim extra compensation. The programme, intended to boost employee donations by matching them with corporate contributions, was allegedly gamed by falsely routing money through Telugu community organizations in the US.

Reports indicate that several of the sacked employees collaborated with well-known Telugu associations, including TANA (Telugu Association of North America) and ATA (American Telugu Association). Some of the individuals held senior roles within these groups. In one case, a fired employee was reportedly a regional vice president at TANA, while another was the spouse of ATA’s former president.

The alleged fraud involved fabricating donation records and receiving personal kickbacks, while the company unknowingly matched those donations—effectively doubling the amount. The scandal has triggered investigations into multiple Telugu associations, with the possibility of a larger network being involved across different corporations.

Indian-American Congressman Suhas Subramanyam from Virginia has stepped in, demanding clarity from Fannie Mae. He questioned the company’s decision to terminate hundreds of Indian-origin employees without what he called “due process.” The Congressman emphasized that affected employees deserve transparency and a fair inquiry before being branded as guilty.

This isn’t the first time such fraud has been linked to Telugu nonprofits. A similar case emerged earlier this year when Apple fired over 100 employees—some allegedly involved with Telugu charities—over a donation scam at its Cupertino headquarters. With both Apple and Fannie Mae now involved, questions are mounting over the potential scale of this coordinated abuse.