Fraud allegations involving US federal student aid have placed two Kenyans among five people charged in an investigation into the alleged misuse of stolen identities.
US authorities say the cases form part of Operation Ghostbusters, an investigation targeting schemes in which fake students were allegedly created to obtain education funding. The combined intended losses are estimated at about $2.9 million, equivalent to roughly Ksh.376 million.
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Fraud investigation names Kenyan suspects
The suspects are facing charges in separate cases filed in New Jersey, Virginia and Nebraska.
Two of those charged are Kenyan nationals, while three other suspects were arrested in New Jersey.
Investigators have also identified additional individuals in Kenya who may be connected to the alleged scheme as inquiries continue.
In one case, prosecutors allege that a Kenyan national received more than 700 student aid refund payments worth approximately $1.44 million.
Authorities claim that more than $1.3 million was later moved through accounts in Kenya and the United States using wire transfers and other financial services.
More than $750,000 in cryptocurrency linked to a Kenyan national has also been seized as part of the investigation.
Stolen identities allegedly used in fraud scheme
According to US prosecutors, stolen personal information was allegedly used to create fictitious college students.
Some identities reportedly belonged to people who had never enrolled in university.
Investigators say the information was used to register students at American colleges before applications were submitted for federal assistance through the Free Application for Federal Student Aid.
Once tuition and other charges were deducted, remaining student aid funds were allegedly redirected to accounts controlled by individuals involved in the operation.
Fraud proceeds allegedly transferred to Kenya
In the New Jersey case, three suspects are accused of handling more than $1 million in student aid obtained through fraudulent applications.
Authorities allege that some of the money was retained in the United States before additional funds were transferred to associates in Kenya.
Some transactions were reportedly connected to a business presented as a safari company.
The alleged activity is believed to have taken place between March 2021 and January 2026.
Nebraska case forms part of wider fraud probe
Kenyan national Francis Mogambi has separately been indicted in Nebraska on charges related to alleged theft of government funds and aggravated identity theft.
Prosecutors claim stolen identities were used between November 2025 and May 2026 to obtain federal student aid.
Authorities allege that part of the money was retained before the remainder was transferred to associates in Kenya.
The wider Operation Ghostbusters investigation has identified hundreds of thousands of potentially suspicious student aid accounts.
US agencies say investigations are continuing as authorities seek to recover funds and identify additional suspects linked to the alleged fraud.
US authorities widen Operation Ghostbusters probe
The wider investigation has identified more than 830,000 potentially fraudulent federal student aid accounts linked to nearly $130 million in funding.
The FBI has separately identified more than $32 million in losses connected to similar so-called ghost student schemes.
Operation Ghostbusters involves the US Justice Department, FBI and Department of Education, with Kenyan authorities also assisting the investigation.
US officials say efforts are continuing to recover funds and pursue suspects outside the country.
