News Dispatches
Washington DC: In a sweeping move that has sent ripples through the Indian-American community, particularly among Telugu professionals, U.S. federal mortgage agency Fannie Mae has laid off approximately 700 employees over the past two days. Of those dismissed, about 200 individuals—mostly of Telugu origin—were terminated on ethical grounds, according to media reports citing internal sources. These dismissals are linked to the alleged abuse of Fannie Mae’s charitable “matching grants program,” a scheme designed to amplify employee contributions to non-profit organizations by matching them with company funds.
The situation has drawn attention due to the involvement of prominent Telugu non-profit groups in North America, especially the Telugu Association of North America (TANA). Allegations suggest that some employees worked in concert with these organizations to manipulate donation records and redirect funds for personal benefit. Among those let go were individuals who held significant roles within the Telugu community in the U.S., including a regional vice president of TANA and a person married to a former president of the American Telugu Association (ATA).
Sources indicate that the fraudulent activity revolved around creating fake donation receipts or inflating actual donations to receive higher matched funds from the company. These company contributions were then reportedly rerouted or laundered back to the employees or associated entities. This misuse of corporate philanthropy has triggered broader investigations into the practices of TANA and similar organizations.
The unfolding scandal at Fannie Mae comes on the heels of a comparable incident at tech giant Apple earlier this year. In January 2025, Apple fired over 100 employees for misusing its "Matching Gifts Program," a similar initiative that doubles charitable donations made by employees to approved non-profits. That case involved employees fabricating donation details in coordination with certain non-profits to siphon funds and claim improper tax deductions. The Santa Clara County District Attorney's Office charged six former Apple employees for extracting over $150,000 through fraudulent means and overstating another $100,000 as charitable tax write-offs.
In both the Apple and Fannie Mae cases, TANA has emerged as a central entity under scrutiny. The Federal Bureau of Investigation (FBI), along with the Internal Revenue Service (IRS) and the Department of Justice (DOJ), is actively investigating the alleged fraudulent use of matching grant programs tied to this organization. Last December, the Northern District of California court issued a subpoena compelling TANA to testify before a grand jury. The subpoena demanded detailed records of donations received, expenditures, and internal representative data from 2019 through 2024.
The events have sparked widespread concern within the Telugu diaspora and raised questions about oversight in corporate donation programs. While no formal charges have yet been announced in the Fannie Mae case, investigations are ongoing, and the situation continues to evolve. For now, the scandal underscores the vulnerability of well-intentioned charitable initiatives to exploitation and the potential fallout when community ties intersect with corporate ethics violations.
