US prosecutors accuse suspects of using stolen identities to obtain student aid and sending proceeds to Kenya.
The US Department of Justice has announced charges under Operation Ghostbusters, targeting alleged student-aid fraud involving suspects in Kenya. The investigation has produced five indictments, while more than 40 investigations remain open.
Prosecutors say suspects used stolen American identities to apply for federal student aid and enrol fictitious students. These so-called ghost students never attended classes.
After colleges released aid refunds, US-based intermediaries allegedly collected the payments through bank accounts. They kept a share, then transferred the balance to suspected accomplices in Kenya through banks, money-transfer services and cryptocurrency.
To maintain the payments, suspects allegedly completed coursework and other academic requirements under the stolen identities. This helped keep the fictitious enrolments active across successive semesters.
Operation Ghostbusters cases linked to Kenya
In Nebraska, prosecutors accuse Kenyan citizen Francis Mogambi of using stolen identities to enrol fictitious students and divert aid. They allege he retained 30% of the proceeds and sent the remainder to Kenya, with intended losses of $20,000.
Mogambi faces five counts each of theft of government money and aggravated identity theft following his October 19, 2026 indictment. He remains in custody awaiting trial. If convicted, he faces a mandatory minimum prison term of at least 10 years on the identity-theft charges.
Meanwhile, a sealed Virginia indictment accuses another Kenyan national of receiving more than 700 fraudulent refunds worth about $1.44 million. Prosecutors also allege that the suspect moved at least $1.3 million through US and Kenyan accounts.
In New Jersey, three alleged intermediaries face accusations of receiving more than $1 million in fraudulent aid. They allegedly retained a portion and sent the rest to Kenya, including to people linked to a purported safari company.
Kenyan agencies help recover cryptocurrency
US investigators travelled to Kenya in September to work with local authorities on extradition, prosecution and asset recovery. Kenya’s Directorate of Criminal Investigations, Asset Recovery Agency and Office of the Director of Public Prosecutions assisted the effort.
With that assistance, US authorities seized cryptocurrency worth more than Sh97 million ($750,000) from a Kenyan national’s account. The Justice Department described this as its Fraud Division’s first international cryptocurrency seizure in Kenya.
Separately, investigators flagged 830,840 potentially fraudulent Federal Student Aid IDs in September and October 2026. Those accounts linked to nearly $130 million in aid, and investigators recommended disabling them. That amount represents potentially fraudulent accounts, rather than confirmed losses.
The FBI has identified more than $32 million in losses from similar schemes. Officials believe the wider fraud could exceed $200 million.
The Justice Department stressed that charges remain allegations. Every defendant retains the presumption of innocence unless a court proves guilt.
