NAIROBI/WASHINGTON — The United States Department of Justice has charged several individuals, including Kenyan nationals, in connection with a nationwide “ghost student” fraud scheme that allegedly diverted millions of dollars in federal student aid.
Under Operation Ghostbusters, prosecutors say the network used stolen identities of American citizens to create fraudulent Federal Student Aid accounts and enrol fictitious students at US colleges and universities. After loans and grants were disbursed, the refunds were channelled to bank accounts controlled by the suspects and their associates, including individuals linked to Kenya.
In one case, Kenyan citizen Francis Mogambi was indicted in Nebraska on charges of theft of government money and aggravated identity theft. Prosecutors allege he worked with associates in Kenya to redirect aid payments, retaining a portion and transferring the rest overseas.
A separate sealed indictment in Virginia charges another Kenyan national with conspiracy to commit wire fraud and student aid fraud involving more than 700 fraudulent refunds worth approximately $1.44 million. Additional defendants face charges in New Jersey related to schemes exceeding $1 million.
Authorities have seized more than $750,000 in cryptocurrency linked to a Kenyan national — described as the first international seizure of its kind in Kenya. Investigators have identified over 830,000 potentially fraudulent student aid accounts associated with nearly $130 million.
Assistant Attorney General Colin M. McDonald warned that those involved would be pursued regardless of location. “Whether you are in Nebraska, New Jersey, Virginia, or Nairobi, we will pursue you,” he said.
The US Embassy in Nairobi has acknowledged cooperation with Kenyan law enforcement agencies in the investigation.