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At least 200 employees were allegedly fired on ‘ethical grounds’ for misusing Fannie Mae’s matching grants programme. Following the mass layoffs, an Indian-American Congressman has sought the company’s response
Fannie Mae’s matching grants programme is an extension of employees’ salaries and a scheme designed to support charitable donations. (Image: AFP/File)
American mortgage giant Fannie Mae has fired 700 employees as part of a restructuring process, of which 200 employees — mostly of Telugu origin — were dismissed on “ethical grounds” over financial irregularities.
At least 200 Indian-American employees were allegedly fired for misusing Fannie Mae’s matching grants programme by collaborating with Telugu associations. Following the mass layoffs, an Indian-American Congressman has sought the company’s response.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a US government-run enterprise. According to reports, a majority of the 200 staffers fired for salary fraud are Telugus. The matching grants programme is a payment, which is an extension of employees’ salaries, and a scheme designed to support charitable donations.
A report published by Times of India said the sacked employees allegedly collaborated with nonprofit organisations, some of which were associated with the Telugu community in the US, and falsified donations to access company funds. These organisations include Telugu Association of North America (TANA), which is at the centre of the controversy.
The report said one of the sacked employees holds the post of regional vice-president in TANA organisation while another is the spouse of a former president of the American Telugu Association (ATA).
A report published by Economic Times said TANA was already under the scanner for the alleged misuse of corporate matching grants. It is being investigated by the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) and Department of Justice (DOJ).
The report said in January, Apple fired more than 100 employees for misusing its matching grants programme, where employees allegedly coordinated with charitable organisations to create fraudulent records and transfer matching funds back to themselves.
Reports said the layoffs took place on April 9 and 10. Indian-American Congressman Suhas Subramanyam from Virginia said he had sought a response from Fannie Mae.
“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,” he was quoted. “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.”
- Location :
Washington D.C., United States of America (USA)
