US federal mortgage giant Fannie Mae has laid off approximately 700 employees, including Telugu workers, over the span of two days. Among these, about 200 employees, the majority of whom are Telugu, were terminated on "ethical grounds," according to a report by The Times of India, citing sources.
The dismissals are connected to irregularities and misuse of the company’s "matching grants program," a scheme designed to support charitable donations, as reported by the English daily.
Some employees allegedly colluded with non-profit organizations, such as the Telugu Association of North America (TANA), and misused company funds. TANA is at the center of the controversy, with one of the laid-off employees holding a regional vice president position in the organization and another being the spouse of a former president of the American Telugu Association (ATA), the report stated.
This controversy follows a similar scandal at Apple in January 2025, where over 100 employees were fired for misusing its "Matching Gifts Programme." Apple’s program matches employees’ charitable contributions to eligible non-profit organizations.
Some employees allegedly coordinated with certain charitable organizations to create fraudulent records and transfer matching funds back to themselves. Although the figures are unconfirmed, reports suggested that around 185 employees were affected.
TANA is being investigated in connection with the alleged misuse of corporate matching grants, including those from Apple.
The Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and the Department of Justice (DOJ) are investigating TANA, according to a report in The Economic Times.
In December of last year, the Santa Clara County District Attorney’s Office charged six former Apple employees (non-Indian) with exploiting the company’s charitable donation program. This resulted in approximately $152,000 being extracted from the company and overreporting around $100,000 in charitable contributions as tax deductions.
Last December, the Northern District of California court issued a subpoena to TANA to testify before a grand jury, requesting records of donations received, amounts spent, and information on the representatives who worked for the organization at various levels between 2019 and 2024.
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