Fannie Mae, a major mortgage company in the U.S., has reportedly fired around 200 employees, most of whom are Telugu-speaking individuals, citing ethical violations. Earlier in January, Apple also let go of about 50 employees, including some Indians, at its Cupertino headquarters over allegations of financial misconduct aimed at increasing their pay. In response to these mass firings, an Indian-American Congressman has started an investigation and asked Fannie Mae for an explanation.

Fannie Mae, the largest American company by assets and a government-run enterprise, recently laid off 700 employees as part of a restructuring effort. Among those let go were 200 Indian-American staffers, many of whom were reportedly dismissed on ethical grounds, including some cases of fraud. According to a report by The Times of India, most of these 200 Indian-American employees were from the Telugu community. The alleged ethical violations are related to issues with Fannie Mae's matching grants program. The payment in question is an extension of employees' salaries, compensating them for the donations they make under the matching gift program.

The employees who were fired are accused of working with nonprofit organisations — some of which are connected to the Telugu community in the US — and falsifying donations to take advantage of the program and access company funds. According to a report by The Times of India, several employees are accused of working together with the Telugu Association of North America (TANA) to trick companies and misuse funds. One of the employees who was laid off on Thursday was reportedly serving as a regional vice president at TANA. Another person involved is the spouse of a former president of the American Telugu Association (ATA). Sources also said that TANA is not the only group being looked into—other associations are also under investigation. Some employees at Fannie Mae told the Times of India that the layoffs took place on April 9 and 10, and were made for "ethical grounds."

Andhra Pradesh and Telangana have the highest number of Telugu-speaking people. On April 9, Indian-American Congressman Suhas Subramanyam from Virginia mentioned that he had asked Fannie Mae for an explanation regarding the layoffs. "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 Subramanyam.

"I have spoken with many of these employees in our community, and they deserve due process. Fannie Mae owes them, Congress, and the American people an explanation immediately," the Congressman added. In December 2024, the Northern District of California court issued a subpoena to TANA, requiring the group to testify before a grand jury. The subpoena asked for records of donations received, how the money was spent, and details about the organisation's representatives from 2019 to 2024.

Earlier this year, similar allegations were made against employees at tech giant Apple. The company reportedly fired over 100 employees, including around 50 from its headquarters in Cupertino, after discovering a scheme to inflate employee compensation through fraudulent activities. Authorities in the Bay Area issued warrants for six of the fired Apple employees, none of whom were Indian. Reports have revealed that several Indian employees were involved in misusing Telugu charity organisations in the US for fraudulent activities. The scheme reportedly saw employees pretending to make donations, which were later refunded to them.

Apple’s matching contributions were kept, and the fake donations were written off on the defendants' tax returns, defrauding the state of California. After Apple fired 200 employees, mostly Telugus, over the scam, it suggests that this manipulation may not be limited to just one company and could be more widespread than previously thought. A thorough investigation should uncover the full extent and origin of the issue.