US Mortgage Giant Fannie Mae Fires 200 Employees, Mostly Linked To Telugu Groups, For 'Donation Scam'

Last Updated:April 16, 2025, 21:56 IST

At least 200 employees were allegedly fired on 'ethical grounds' for misusing Fannie Mae's matching grants programme. Following the mass layoffs, an Indian-American Congressman has sought the company's response

Fannie Mae's matching grants programme is an extension of employees' salaries and a scheme designed to support charitable donations. (Image: AFP/File)

American mortgage giant Fannie Mae has fired 700 employees as part of a restructuring process, of which 200 employees were mostly of Telugu origin and dismissed on “ethical grounds" over financial irregularities.

At least 200 Indian-American employees were allegedly fired for misusing Fannie Mae’s matching grants programme by collaborating with Telugu associations. Following the mass layoffs, an Indian-American Congressman has sought the company’s response.

The Federal Mortgage Association (FNMA), commonly known as Fannie Mae, is a US government-run enterprise. According to reports, a majority of the 200 staffers fired for salary fraud are Telugus. The matching grants programme is a payment, which is an extension of employees’ salaries, and a scheme designed to support charitable donations.

A report published by Times of India said the sacked employees allegedly collaborated with nonprofit organisations, some of which were associated with the Telugu community in the US, and falsified donations to access company funds. These organisations include Telugu Association of North America (TANA), which is at the centre of the controversy.

The report said one of the sacked employees holds the post of regional vice-president in TANA organisation while another is the spouse of a former president of the American Telugu Association (ATA).

Washington D.C., United States of America (USA)

News world US Mortgage Giant Fannie Mae Fires 200 Employees, Mostly Linked To Telugu Groups, For 'Donation Scam'