World · North America · 4 hrs ago
US investigates alleged $130m student aid fraud linked to Kenya
US authorities are investigating an alleged scheme that used stolen identities to claim federal student aid.
The investigation, called Operation Ghostbusters, includes cases linked to Kenya, Nebraska, Virginia and New Jersey.
Prosecutors say Kenyan citizen Francis Mogambi worked with associates in Kenya to enroll fake students at US colleges and redirect their aid payments.
Mogambi was indicted in Nebraska on 10 counts and is being held pending trial; the allegations have not been proven in court.
Investigators identified 830,840 potentially fraudulent aid IDs linked to nearly $130 million, but that figure is not confirmed losses.
Five people have been indicted, and 40 other investigations remain open, while authorities say they seized more than $750,000 in cryptocurrency linked to a network associated with Kenyan nationals.
Stolen identities can leave victims facing debt for loans they never took out.
US officials have worked with Kenyan law enforcement on extraditions, prosecutions and recovering money allegedly stolen, and the investigation continues.
US authorities are investigating an alleged scheme that used stolen identities to enrol fictitious students at American colleges and obtain federal student aid.
Investigators identified 830,840 potentially fraudulent aid identification numbers associated with nearly $130 million in September and October 2026.
The figure is associated with potentially fraudulent accounts and does not represent confirmed losses.
A Kenyan national, Francis Mogambi, was indicted in Nebraska on 10 counts over allegations that he helped run part of the scheme.
The wider investigation, called Operation Ghostbusters, has produced five indictments, and 40 other investigations remain open, according to the BBC.
- Who
- US authorities are investigating alleged fraud involving suspects in the United States and Kenya. Francis Mogambi is among those indicted.
- What
- The alleged scheme used stolen identities to enrol fictitious students and obtain federal student aid.
- When
- Investigators identified potentially fraudulent accounts in September and October 2026. Mogambi was indicted on October 19, 2026.
- Where
- The investigation covers the United States and alleged links to Kenya, including Nairobi.
- Why
- Prosecutors say the scheme was used to divert federal student aid payments to alleged participants.
This story does not have two clearly opposing sides.
Francis Mogambi arrived in the United States after winning the Diversity Visa lottery.
Prosecutors allege Mogambi worked with associates in Kenya to steal identities and fraudulently enrol fictitious students.
Investigators identified 830,840 potentially fraudulent student aid identification numbers associated with nearly $130 million.
A grand jury in Nebraska indicted Mogambi on five counts of theft of government money and five counts of aggravated identity theft.
The Justice Department announced the first charges in the investigation at a news conference.
- Potentially fraudulent aid IDs
- 830,840
- Associated aid amount
- Nearly $130 million; not confirmed losses
- Mogambi indictment
- 10 counts in Nebraska
- Mogambi alleged intended loss
- $20,000
- Operation Ghostbusters
- Five indictments and 40 further investigations remain open
- Cryptocurrency seizure
- More than $750,000 linked to a network associated with Kenyan nationals
3 sources
What people are saying
If you steal taxpayers' dollars, if you exploit a programme meant to help students, we are resolved to find you and prosecute you,
The goal is to keep the ghost student in school as long as possible. Semester after semester after semester stealing money from the taxpayers,
Whether you are in Nebraska, New Jersey, Virginia, or Nairobi, we will pursue you,
Every dollar that falls into the hands of a fraudster is a dollar that will not go to a student in need.