Fannie Mae Layoffs: 200 Indian-Americans, Many Linked To Telugu Groups, Fired On 'Ethical Grounds' After Donation Scam

(MENAFN- Live Mint) US-based financial company Fannie Mae laid off 200 Indian-American employees from its team, with a majority of them linked to Telugu groups on 'ethical grounds' after a donation scam, Times of India reported on Wednesday, April 16.

While 200 people were laid off on 'ethical grounds', many others were fired as part of a restructuring exercise. The report stated that a total of 700 employees have lost their jobs.

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The report also quoted the company, which said that the layoffs , which occurred on Wednesday and Thursday, were on 'ethical grounds'.

On April 8, 2025, the company acknowledged that it laid off more than 100 people for“unethical conduct”, including facilitating fraud.

“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,” said Priscilla Almodovar, President and Chief Executive Officer of Fannie Mae in an official statement.

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The company allegedly fired those employees over reported irregularities and misuse of Fannie Mae's 'matching grants program', according to the news portal's report.

According to multiple media reports, this grant extends the employee's salary and acts as a compensatory gift for what the employee donates under the matching gift programme.

The employees who were fired allegedly collaborated with non-profit organisations like the Telugu Association of North America (TANA) and falsified donations to exploit the programme in order to gain access to company funds, as per an India Today report.

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One of the laid-off employees was reported to have held the vice president position at TANA, while another employee was the former president of the American Telugu Association (ATA).

People aware of the development told the news portal that TANA is not the only non-profit organisation involved in the issue. Other associations were also allegedly under investigation .

“It has been brought to my attention that Fannie Mae has accused hundreds of my constituents in the Indian-American community of fraudulent behaviour and fired them without conducting a full investigation or providing evidence,” said Indian-American Congressman Suhas Subramanyam on April 9, as per the India Today report.

Subramanyam supported the employees and asked for an“immediate” explanation from the company, stating that they deserved due process, according to the report.

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