Kenyan links emerge in $200m US ‘ghost student’ fraud

A nationwide fraud scheme costing over $200 million, involving stolen identities, fake student enrolments and diverted federal education funds, has allegedly linked some activities to a network of Kenyan nationals, according to the United States Department of Justice. The Department announced the first results of Operation Ghostbusters, a nationwide investigation into the misuse of federal student aid, and charged five defendants, seizing over $750,000 in cryptocurrency.

Five Kenyan nationals were accused of conspiring with others in Kenya to obtain more than $1 million in federal student aid, diverting funds through US bank accounts. In Virginia, a Kenyan national was indicted for allegedly stealing American identities, enrolling them in educational institutions, and redirecting federal student aid payments, with 30% kept by the defendant.

In Nebraska, another Kenyan citizen was accused of working with associates in Kenya to steal identities, enrol individuals in institutions, and redirect federal aid payments, with 30% kept by the defendant. The FBI has identified over $32 million in losses from similar schemes, with millions more suspected. The investigation, opened by the FBI Richmond Field Office, is ongoing, with more than 40 open cases across 26 FBI field offices and 20 U.S. Attorney's Offices.