The U.S. Justice Department announced indictments against five defendants, among them Kenyan nationals, for operating a “ghost student” fraud that caused confirmed losses exceeding $32 million.

In Nebraska, a federal grand jury returned a ten‑count indictment on 19 October against Francis Mogambi, a Kenyan citizen who entered the United States on a Diversity Visa in May 2024, charging him with theft of government money and aggravated identity theft.

Court filings allege Mogambi kept about 30 percent of the fraud proceeds for himself while sending the remainder to associates in Kenya, and that he told a potential recruit he was earning roughly $2,000 a week from the scheme.

A sealed indictment in the Eastern District of Virginia targets another Kenyan national for conspiracy to commit wire fraud and student‑aid fraud, alleging he received more than 700 fraudulent refund deposits totaling approximately $1,439,548, most of which was transferred onward to accounts in the United States and Kenya.

Three defendants were arrested in New Jersey for conspiring with Kenyan co‑conspirators to siphon over $1 million in federal student aid between March 2021 and January 2026, using a purported safari company to move the funds.

Kenyan law‑enforcement agencies—including the Directorate of Criminal Investigations, the Asset Recovery Agency and the Office of the Director of Public Prosecutions—are cooperating with U.S. investigators on the case.

The FBI seized more than $750,000 in cryptocurrency from a Kenyan national, marking the first international seizure of its kind in the investigation.

Federal officials have confirmed over $32 million in verified losses, while flagging an additional 830,840 potentially fraudulent student‑aid accounts linked to nearly $130 million; investigators estimate total losses could exceed $200 million.

More than 40 open cases are now active across 26 FBI field offices as the investigation continues.

Americans who suspect they are victims of the scheme are advised to file complaints with the Department of Education’s Office of Inspector General via its online form.