US authorities are investigating an alleged $130 million fraud involving stolen identities and fictitious college enrolments, with several Kenyan nationals facing charges under a nationwide probe dubbed Operation Ghostbusters.
The investigation has so far resulted in five indictments involving Kenyan nationals, while around 40 other cases remain under investigation, according to US officials.
In one case, Francis Mogambi, a Kenyan national who entered the US in May 2024 through the Diversity Visa programme, was indicted by a Nebraska grand jury on October 19, 2026. He faces five counts of government funds theft and five counts of aggravated identity theft.
Prosecutors allege that between November 2025 and May 2026, Mogambi and associates in Kenya used stolen identities of American citizens to enrol fictitious students in colleges and fraudulently claim federal financial aid. He allegedly retained 30% of the proceeds and transferred the remainder to associates. The intended loss in his case was $20,000.
Investigators identified 830,840 potentially fraudulent Federal Student Aid identification numbers linked to nearly $130 million in September and October 2026. Officials clarified that this represents suspected fraudulent accounts, not confirmed financial losses.
US authorities said stolen personal information was purchased online for $4-$8, with low-income Americans among the targeted victims. The fraud could also leave identity theft victims burdened with student loan liabilities.
Separately, investigators working with Kenyan authorities seized over $750,000 from a cryptocurrency account linked to the wider scheme. Other cases in Virginia and New Jersey involve alleged fraudulent refunds exceeding $2.4 million.
Assistant Attorney General Colin M McDonald said authorities would pursue those responsible. If convicted, Mogambi faces a mandatory minimum sentence of 10 years.
