American mortgage giant Fannie Mae has laid off 700 employees, with approximately 200 dismissed on ethical grounds linked to an alleged donation scam involving Telugu organisations. According to reports, while some layoffs were part of planned organisational restructuring, a significant number were related to misuse of the company’s matching grants program.
Sources familiar with the matter claim that several employees, many of Telugu origin, collaborated with non-profit organisations such as the Telugu Association of North America (TANA) to improperly benefit from Fannie Mae’s donation-matching policy. One of the dismissed employees reportedly held the title of regional vice president in TANA. Insiders also suggest that other similar organisations might be involved.
This controversy mirrors a similar case at Apple earlier this year.
Apple’s Matching Gifts Scam: A Recap
In January 2025, Apple terminated over 100 employees under similar allegations. The firings were linked to abuse of Apple’s Matching Gifts Programme, which matches employees’ charitable donations to eligible non-profits.
In December 2024, the Santa Clara County District Attorney charged six former employees—non-Indians—accused of defrauding Apple of over $150,000 through fake donation claims. Between July 2018 and April 2021, they allegedly manipulated the program by coordinating with certain charities to falsely claim donations. One former employee, Kwan, reportedly reimbursed coworkers for their supposed contributions while pocketing Apple’s matching funds, also enabling inflated tax deductions.
Authorities stated this scheme defrauded both Apple and the State of California.
