In a growing controversy surrounding American mortgage giant Fannie Mae, more than 100 employees — many of them from the Telugu-speaking community — have reportedly been laid off over allegations of misusing the company’s matching grants programme.
According to The Times of India report, the employees are accused of working with certain non-profit organisations, some associated with the Telugu diaspora in the US, to falsify donations and obtain corporate funds.
According to a report by Jagran English, among the organisations named in the scandal is the Telugu Association of North America (TANA), with reports suggesting that one of the terminated employees served as a regional vice-president.
The matching gift programme at Fannie Mae aims to match employees’ charitable donations with company contributions. Reports suggest that employees under investigation submitted false donation details to fraudulently obtain these funds.
In response to growing scrutiny over the issue, Priscilla Almodovar, President and CEO of Fannie Mae, issued a statement on April 8, 2025, confirming that more than 100 employees had been terminated.
She said, “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.”
Indian-American lawmakers intervene amid Fannie Mae layoffs
The mass termination, which has reportedly impacted over 200 Telugu-speaking employees, has prompted swift reactions from the Indian-American political community.
Three lawmakers of Indian origin have stepped in, demanding an official explanation from Fannie Mae on the basis of the dismissals and whether due process was properly followed.
One Indian-American Congressman has already initiated formal communication with the mortgage finance giant, seeking clarity on the allegations of “salary scams” and expressing concerns regarding the transparency and fairness of the mass layoffs.
