Around 200 Telugu-speaking employees at Fannie Mae, the U.S.-based mortgage giant, have been terminated in a mass sacking that’s now under scrutiny for alleged lack of due process. The dismissals are tied to accusations of fraud involving misuse of the company’s Matching Gift Program, where employees’ donations to approved nonprofits are matched by the employer. However, multiple terminated employees claim they were not even part of the program or had no wrongdoing, yet were not given a chance to defend themselves.
These dismissals have triggered backlash, especially within the Indian-American community, prompting three Indian-American lawmakers — Suhas Subramanyam, Raja Krishnamoorthi, and Shri Thanedar — to write to Fannie Mae’s leadership and the Federal Housing Finance Agency, demanding clarity and accountability. They emphasized that:
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The employees, many of whom had long-standing tenure and strong performance records, were not informed of the evidence against them.
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No opportunity was given to appeal or respond to the allegations before being sacked.
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The process lacked transparency and fairness, and may have disproportionately affected Indian-American employees, especially Telugu-speaking ones.
The letter expressed concern that Fannie Mae might have used participation in the Matching Gift Program — or even mere association with Indian-American organizations like TANA (Telugu Association of North America) and ATA (American Telugu Association) — as a pretext to cut workforce during a broader restructuring involving 700 employees. TANA, in particular, was reportedly a key player in the suspected misuse of the donation-matching system. One employee fired held a senior position within TANA; another was related to a former ATA president.
This episode echoes a similar scandal from January, when Apple terminated about 50 employees, including some Indians, for alleged financial misconduct involving charitable donations.
Meanwhile, Fannie Mae hasn’t publicly responded in detail, but the pressure is mounting. The lawmakers are pushing not only for transparency but also for restorative justice, if wrongful terminations indeed took place.
Their key demands include:
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Disclosure of evidence and the process followed in firing decisions.
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Clarification on whether any appeals process was available.
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Assurance that cultural or community associations did not unjustly influence decisions.
This case has become a flashpoint for broader conversations around corporate ethics, fair HR practices, and protections for minorities in the U.S. workforce — especially in large, federally-affiliated institutions like Fannie Mae.
