In a major development impacting the Indian-American community, three Indian-American lawmakers have raised concerns over the mass termination of Telugu-origin employees at Fannie Mae, a prominent American mortgage financing giant.
The company recently sacked nearly 200 staffers, the majority of whom were Telugu-speaking professionals, over alleged involvement in a salary scam. The lawmakers are demanding a detailed explanation and a fair investigation into the matter.
The employees were part of the Federal National Mortgage Association, commonly known as Fannie Mae, which holds the largest mortgage asset portfolio in the US. The terminations were reportedly based on ethical violations, specifically related to the misuse of the company’s Matching Gift Program — a policy under which Fannie Mae matches employee donations to approved charities.
Congressman Suhas Subramanyam from Virginia, along with Raja Krishnamoorthi and Shri Thanedar, wrote a formal letter to Fannie Mae’s CEO, Priscilla Almodovar, and William Pulte, Director of the Federal Housing Finance Agency.
In their letter, the lawmakers questioned whether due process was followed during the termination of services and expressed concern over the lack of proper investigation and absence of advance notice.
“We are concerned by a potential lack of due process for the impacted employees and request an immediate explanation to understand why their employment was terminated without a thorough investigation,” the lawmakers stated. They added that many of the sacked professionals had clean service records and were not given a chance to present their side.
According to reports, several terminated employees were linked to Indian-American charity organisations, including the Telugu Association of North America (TANA) and the American Telugu Association (ATA). One individual was reportedly a regional vice president at TANA, and another was married to a former ATA president. Some sources allege these groups may have been used to carry out donation-linked fraud, prompting the company’s disciplinary action.
The lawmakers emphasized that many of these employees had never even participated in the Matching Gift Program or donated to these organisations, raising doubts about the validity of the claims. The letter also questioned if the involvement with Indian-American charities was being unfairly used as grounds for termination.
While the company had earlier stated that the layoffs were part of a broader restructuring involving 700 staffers, the disproportionately high number of Telugu-origin employees affected has alarmed community leaders and policymakers. The episode draws parallels to an earlier case at Apple’s Cupertino office, where 50 employees, including several Indians, were terminated over financial misconduct involving charitable donations.
The lawmakers insisted that Fannie Mae clarify if affected employees were shown proof of wrongdoing or allowed to appeal their termination. They warned against reputational damage to individuals without solid evidence or fair hearing.
This growing controversy underscores the need for transparent processes in corporate America, particularly when dealing with minority communities. While fraud prevention is critical, the Indian-American lawmakers insist that fairness, transparency, and due process must not be compromised.
The case has stirred strong emotions in the Telugu community across the US, with calls for justice and accountability mounting amid fears of stereotyping and reputational harm.
