US Charges Kenyans in $2.9 Million Ghost Student Aid Fraud

US prosecutors have charged five people in three separate cases linked to an alleged federal student aid fraud scheme dubbed Operation Ghostbusters. Two of the defendants are Kenyan nationals, while three others were arrested in New Jersey.

Prosecutors estimate the combined intended financial losses at approximately $2.9 million. In one Nebraska case, a Kenyan national allegedly received more than 700 fraudulent student aid refund deposits totalling about $1.44 million.

“Geographic borders would not shield suspects from prosecution.”

The suspects are accused of stealing personal information from Americans, particularly people who had never attended college, and using those identities to create fictitious students known as ghost students. The alleged fake students were then enrolled in colleges across the United States.

Authorities say the money was redirected through bank accounts controlled by the suspects and their associates. Foreign actors allegedly worked with people inside the United States who acted as money mules to receive and move funds.

The Justice Department announced the seizure of more than $750,000 in cryptocurrency from an account belonging to a Kenyan national connected to the scheme. Two additional suspects based in Kenya are expected to face charges as investigations continue.

Assistant Attorney General Colin McDonald said the investigation targets individuals exploiting federal student aid programmes and warned that geographic borders would not shield suspects from prosecution.