US Assistant Attorney General Colin M McDonald vowed to pursue all those involved
A Kenyan national, Francis Mogambi, is facing a possible decade-long prison sentence in the United States over his alleged involvement in a fraudulent scheme targeting the country’s federal student financial aid programme.
Mogambi, who entered the US in May 2024 after securing a Diversity Visa, was indicted by a grand jury in Nebraska on October 19, 2026.
He faces five charges of stealing government funds and another five relating to aggravated identity theft.
According to prosecutors, he collaborated with accomplices in Kenya between November 2025 and May 2026 to obtain the personal details of American citizens and use them to register non-existent students at colleges across the country.
Investigators allege that after securing the fraudulent admissions, the group accessed financial assistance intended for the supposed students.
Mogambi reportedly retained 30 per cent of the proceeds while forwarding the balance to his collaborators in Kenya.
The estimated financial damage linked to his alleged activities stands at $20,000. Court records further indicate that he earned $2,000 weekly and attempted to bring another individual into the operation.
He allegedly told the prospective recruit that he wanted to establish a business through which he could cash larger cheques without incurring tax obligations.
Mogambi was taken into custody following the indictment and remains detained as proceedings await trial. He has yet to publicly respond to the accusations.
His prosecution is connected to a broader federal investigation known as Operation Ghostbusters, which is examining allegations that stolen identities were used to create fictitious college applicants and unlawfully obtain government-funded educational assistance.
The suspected operation is believed to have cost American taxpayers approximately $130 million.
Francis Mogambi/ Image @ Daily Nation
US authorities have so far secured five indictments involving Kenyan citizens, while about 40 other investigations are ongoing.
Officials say hundreds of Americans have suffered identity theft, with criminals allegedly obtaining and selling personal information online for between $4 and $8.
Some of the victims were low-income individuals who had never attended college.
Speaking at a press briefing on October 29, Assistant Attorney General Colin M. McDonald, head of the Justice Department’s National Fraud Enforcement Division, promised to bring those responsible before the courts.
He warned that individuals exploiting public education funds would be identified and prosecuted.
McDonald explained that perpetrators employed sophisticated methods, including artificial intelligence, to make fictitious students appear academically active by attending virtual classes and completing assignments.
This approach allegedly enabled fraudulent accounts to remain eligible for financial assistance over several academic semesters, allowing offenders to collect repeated payments.
Beyond the millions lost by the government, the investigation has exposed the devastating consequences for identity theft victims, who may unexpectedly find themselves burdened with student loans they never applied for.
McDonald cited one affected individual whose stolen identity had damaged his credit standing and left him responsible for an outstanding financial obligation.
He also disclosed that almost one-third of community college applications submitted in California during 2024 were flagged as potentially fraudulent.
Further investigations uncovered 830,840 suspicious Federal Student Aid identification numbers linked to nearly $130 million in September and October 2026. Authorities recommended that the Department of Education deactivate the accounts.
However, officials clarified that the amount represents funding associated with questionable accounts rather than verified financial losses.
The probe has also uncovered alleged cross-border money movements involving Kenya.
In September, American officials visited the country to collaborate with local security agencies on extradition procedures, criminal prosecutions and the recovery of misappropriated funds.
Through joint investigations, authorities confiscated more than $750,000 from a cryptocurrency wallet belonging to a Kenyan citizen allegedly connected to the wider operation.
The Justice Department described the action as the first international seizure of its nature in Kenya.
The recovered funds were not linked to Mogambi’s individual prosecution.
Separately, prosecutors in Virginia are pursuing another Kenyan suspect accused of obtaining more than 700 fraudulent student-aid refunds valued at approximately $1.44 million.
Investigators say at least $1.3 million was subsequently channelled through thousands of transactions involving American and Kenyan bank accounts.
In New Jersey, three additional suspects have been charged over their alleged roles as financial intermediaries in an operation that sought to obtain more than $1 million in federal educational assistance.
The defendants reportedly received the proceeds through US banking institutions, retained portions and transferred the remaining amounts to alleged accomplices in Kenya associated with a supposed safari business.
The Justice Department says Mogambi could receive a mandatory minimum sentence of 10 years if found guilty.
Those convicted may also be ordered to surrender assets obtained through the criminal activities and compensate affected individuals, alongside any custodial punishment.
By: Magdalene Agyeiwaa Sarpong