Kenyans Arrested in $130m US Ghost Student Scam

Francis Mogambi, a Kenyan national, was indicted on 19 October 2026 on five counts of theft of government money and five counts of aggravated identity theft. The indictment followed a grand jury in Nebraska charging him in connection with a nationwide scheme to defraud the US student aid system.

Prosecutors allege that between November 2025 and May 2026, Mogambi worked with associates in Kenya to steal the identities of US citizens and enroll fictitious students in American colleges. Once enrolled, he allegedly diverted financial aid payments to himself, keeping 30% and sending the rest to his associates in Kenya.

The case is part of a larger US investigation, Operation Ghostbusters, which has led to five indictments involving Kenyan nationals and 40 ongoing investigations. The scheme reportedly affected hundreds of people, with stolen personal information used to access federal student aid.

Stolen personal information was sold online for between $4 and $8, with fraudsters targeting low-income Americans who had never attended college. Assistant Attorney General Colin M McDonald emphasized the department's commitment to prosecuting those involved in the fraud.

Investigators identified 830,840 potentially fraudulent Federal Student Aid identification numbers linked to nearly $130m in September and October 2026. The Justice Department recommended disabling these accounts. The figure represents financial aid associated with potentially fraudulent accounts, not confirmed losses.

In September, US officials traveled to Kenya to collaborate with local law enforcement on extraditions and the recovery of stolen funds. Over $750,000 was seized from a cryptocurrency account linked to a Kenyan national involved in the scheme, marking the first international seizure of its kind in Kenya.