Dispute Over Telugu Association Donations in the U.S.... 200 Telugu Employees Laid Off!
A major controversy over donation practices involving Telugu associations has triggered a significant upheaval in the United States, leading to the termination of approximately 700 employees from the Federal National Mortgage Association (Fannie Mae). Notably, around 200 of those dismissed are individuals of Telugu origin. The dismissals were reportedly carried out on the grounds of ethical violations.
The affected employees were predominantly from the Virginia and Dallas regions. Allegations have surfaced that certain employees colluded with Telugu associations to defraud the company. This controversy is linked to a donation-matching grant scheme that came to light last year in the United States. Under this scheme, when an employee donates to a nonprofit organization, the company matches the donation with an equivalent amount—this process is known as a “matching grant.”
However, the core allegation is that employees fabricated documents to falsely claim donations. These alleged fraudulent donations were reportedly made to Telugu organizations such as the Telugu Association of North America (TANA) and the American Telugu Association (ATA), prompting an investigation by the Federal Bureau of Investigation (FBI).
Among those laid off, one individual is said to have held the position of Regional Vice President in TANA, while another is reportedly the wife of a former ATA president. In connection with the case, the North District of Carolina court issued summons to TANA in December of last year, directing the organization to submit records related to donations from 2019 to 2024.
Due to this controversy, Fannie Mae considered ethical concerns and dismissed 200 Telugu employees. Separately, in a similar case involving alleged misuse of matching grants, Apple reportedly terminated 100 employees last year.