(Image source from: Telanganatoday.com)

American mortgage leader Fannie Mae has dismissed approximately 200 workers, predominantly from the Telugu community, due to accusations surrounding a salary scheme. This significant layoff of employees with Indian roots has prompted three Indian-American lawmakers to reach out to Fannie Mae for clarification. They contend that the dismissal of the Telugu employees occurred without an adequate investigation. These individuals were affiliated with the Federal National Mortgage Association, recognized as Fannie Mae, the largest American firm by asset value. The 200 terminated employees were among the broader group of 700 staff members that the American corporation released as part of a restructuring initiative. The purported ethical breaches are associated with anomalies and the misapplication of Fannie Mae's matching donations program, which is linked to employee compensation.

Led by Congressman Suhas Subramanyam from Virginia, three Indian-American lawmakers have addressed a formal letter to Fannie Mae, requesting an explanation for the collective termination of these employees, emphasizing that it was executed without prior notice or thorough investigation. The recent layoffs at Fannie Mae echo similar actions taken by Apple in January, when the tech giant ousted around 50 employees, including some of Indian descent, at its Cupertino headquarters due to allegations of financial misconduct aimed at inflating their salaries. The letter directed to Fannie Mae was endorsed by Congress members Subramanyam, Raja Krishnamoorthi, and Shri Thanedar.

In their correspondence to William Pulte, Director of the Federal Housing Finance Agency, and Priscilla Almodovar, President and CEO of Fannie Mae, the lawmakers stated, "We are writing to seek information regarding the recent terminations at Fannie Mae related to alleged fraud and unethical conduct that have affected many of our constituents, particularly within the Indian American community." They underscored that the dismissals of numerous Telugu employees happened without a proper inquiry into the matter.

“Although we align with your efforts to combat fraud and misuse within the federal system and housing sector, we are troubled by the apparent absence of due process for the affected employees and urge you to provide an immediate explanation to clarify why their employment was terminated without comprehensive investigation or prior notification," they noted in their two-page letter.

In their correspondence, the Congress members pointed out that numerous individuals, who possess extensive experience and have consistently received outstanding performance evaluations, have claimed they did not engage in any misconduct. However, they were denied the chance to present their perspective or advocate for themselves. The letter noted, "It has been reported that these employees faced termination due to supposed breaches of Fannie Mae’s Matching Gift Program. My understanding is that the organizations these individuals supported were sanctioned by Fannie Mae for participation in the program."

The Congress members also mentioned, "We have even heard reports that some Indian American employees were dismissed despite not having made any donations to these organizations or been involved in the Matching Gift Program." They voiced their apprehension that the alleged participation in the Matching Gift Program or contributions to certain Indian American entities may have been exploited as a reason to implement broad workforce reductions at Fannie Mae and to damage the reputations of employees through unfounded fraud accusations without proper inquiry. The Congress members specifically inquired whether those impacted were shown any proof of their supposed infractions regarding the Matching Gift Program or given a chance to contest their dismissals.

According to a report from The Times of India, a significant portion of the 200 employees let go from Fannie Mae under accusations of ethical misconduct are of Telugu descent. Several individuals are purported to have conspired with the Telugu Association of North America (TANA) to mislead companies and misuse funds, which allegedly involved the inappropriate use of Fannie Mae's matching grants initiative. One of the recently terminated employees reportedly served as a regional vice president at TANA, while another is the partner of a former president of the American Telugu Association (ATA).

Reports indicate that TANA is not the sole organization under scrutiny; other groups are also being investigated. Some Fannie Mae employees informed TOI that the layoffs occurred on April 9 and 10, justified by "ethical grounds." Additionally, certain Telugu organizations drew attention in January when Apple terminated employees over similar fraudulent allegations. Of the staff members let go by Apple, six were identified by authorities in the Bay Area and warrants were issued for them. Although none of these six individuals were of Indian descent, another report indicated that many of the dismissed workers were Indians, allegedly exploiting Telugu charity organizations in the United States for fraudulent activities.

Now, Indian-American lawmakers are advocating for the dismissed Telugu employees at Fannie Mae. While fraud must be met with strict consequences, it is essential that thorough investigations and procedures are followed prior to any termination of employment. This is the cause the Congress members are championing.