This unfolding saga highlights the critical need for stronger oversight and transparency in employee-driven charitable initiatives within corporate America
In a major development in the U.S. corporate sector, government-backed mortgage giant Fannie Mae has laid off around 700 employees, with a portion of these terminations linked to ethical violations, reported timesofindia.indiatimes.com.
Sources close to the organization revealed that while some of the job cuts were part of a planned restructuring initiative, approximately 200 employees—many of whom are of Telugu origin—were dismissed over allegations of misconduct.
The ethical violations reportedly involve the misuse of Fannie Mae’s Matching Grants Program, a scheme that supports employee charitable donations by offering equivalent contributions to nonprofit organizations. Investigations suggest that several employees may have colluded with nonprofit associations, including the Telugu Association of North America (TANA), to exploit this benefit for personal gain.
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The scandal has resurfaced concerns about similar cases in the tech industry. Earlier this year, Apple Inc. terminated over 100 employees under comparable circumstances
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These terminations, many involving Indian-origin staff, were tied to fraudulent use of Apple’s Matching Gifts Programme
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This program, like Fannie Mae’s, matches employee donations to qualified charities
In January 2025, the Santa Clara County District Attorney’s Office filed charges against six ex-Apple employees, alleging they manipulated donation records between July 2018 and April 2021. According to the DA’s statement, these individuals defrauded Apple of approximately $152,000 in matching funds and falsely claimed $100,000 in charitable deductions. One of the accused, Kwan, allegedly funneled funds by reimbursing employees for fake donations while retaining Apple’s matching contributions.
Back at Fannie Mae, one of the dismissed individuals is reported to have held a leadership position within TANA, intensifying scrutiny of the nonprofit’s involvement. Sources suggest that TANA may not be the only organization under investigation, indicating the potential scale of the abuse.
These revelations underscore a troubling pattern of misuse of corporate philanthropy programs and have sparked internal audits and policy reviews across several companies. As investigations unfold, more details are expected to emerge, possibly implicating additional nonprofit entities and employees.