US authorities have uncovered an alleged $130 million student financial aid fraud involving stolen identities, fictitious college enrolments and suspected networks operating between the United States and Kenya.
The investigation, known as Operation Ghostbusters, has resulted in five indictments involving Kenyan nationals, while another 40 investigations remain ongoing.
According to the US Department of Justice, fraudsters allegedly used stolen personal information belonging to American citizens, particularly low-income individuals, to enrol fake students in colleges and claim federal financial assistance.
One of the accused, Kenyan national Francis Mogambi, was indicted by a Nebraska grand jury on October 19, 2026, on charges of government fund theft and aggravated identity theft. Prosecutors allege he diverted financial aid payments, retaining 30% and transferring the remainder to associates in Kenya. He was arrested and remains in custody.
Investigators identified 830,840 potentially fraudulent Federal Student Aid identification numbers associated with nearly $130 million in September and October 2026. Authorities clarified that this represents suspected fraudulent accounts, not confirmed financial losses.
Assistant Attorney General Colin M. McDonald said fraudsters used sophisticated methods, including completing coursework through artificial intelligence, to keep fictitious students enrolled and continue receiving payments.
The investigation has also led to international enforcement action. US officials working with Kenyan authorities seized more than $750,000 from a cryptocurrency account linked to the wider alleged network.
Authorities said victims could face damaged credit records and unexpected student loan liabilities. Those convicted could face imprisonment, asset forfeiture and restitution orders.
