The alleged scheme used stolen identities to claim US student aid, with Kenyans among those charged.
Image source, Getty ImagesImage caption, The US Department of Justice has launched Operation Ghostbusters to tackle a $200m (£149m) student aid fraud scheme.
In May 2024, Francis Mogambi arrived in the United States after winning the Diversity Visa lottery, a programme that gives people from around the world a chance to become permanent residents.
Just over two years later, the Kenyan national found himself at the centre of a US investigation into an alleged nationwide scheme to defraud the federal student aid system.
On 19 October 2026, a grand jury in Nebraska indicted Mogambi on five counts of theft of government money and five counts of aggravated identity theft.
Prosecutors allege that, between November 2025 and May 2026, he worked with associates in Kenya to steal the identities of US citizens and use them to fraudulently enroll fictitious students in American colleges.
Once the fake students were enrolled, Mogambi allegedly diverted their financial aid payments to himself, keeping 30% and sending the remainder to his associates in Kenya.
Court documents say Mogambi received $2,000 a week and attempted to recruit another person into the scheme. He allegedly told the individual he needed a business that would allow him to cash larger cheques without paying taxes.
Mogambi was arrested shortly after the indictment was returned and is being held in custody pending trial.
His case forms part of a wider US investigation, dubbed Operation Ghostbusters, into the alleged use of stolen identities to enrol fictitious students at colleges and claim federal financial aid.
US authorities say the investigation has so far resulted in five indictments, while further 40 investigations remain open. Hundreds of people have been affected after fraudsters allegedly stole their personally identifiable information (PII) and used it to access federal student aid.
The stolen personal information was sometimes sold online for between $4 and $8, with fraudsters targeting low-income Americans who had never had the opportunity to attend college.
At a news conference on 29 October announcing the first charges in the investigation, Assistant Attorney General Colin M. McDonald, who heads the Justice Department's National Fraud Enforcement Division, vowed to pursue those involved.
"If you steal taxpayers' dollars, if you exploit a programme meant to help students, we are resolved to find you and prosecute you," he said.
The Justice Department says those behind the fraud use what is described as "super intelligence" to place fake students in classrooms and complete coursework, creating the impression that they are attending college and allowing financial aid payments to continue.
