A multi-million-dollar student financial aid fraud investigation in the United States has put Kenya under the international spotlight after authorities traced more than $750,000 in cryptocurrency to a Kenyan national allegedly linked to the scheme.
The United State
s Department of Justice (DOJ) has announced charges against five individuals under an operation dubbed Operation Ghostbusters, targeting an alleged international network accused of exploiting America’s student financial aid system.
Francis Mogambi,a Kenyan citizen, was named as one of the five defendants In a $750,000 Student Loan Fraud. The DOJ says he entered the United States on May 15, 2024, after winning the Diversity Visa Lottery and subsequently received permanent resident status.
Mogambi was indicted by a federal grand jury in Nebraska on October 19, 2026. The DOJ says he was arrested and subsequently detained pending trial. He faces 10 counts: five counts of theft of government money and five counts of aggravated identity theft. Prosecutors allege that between November 2025 and May 2026, he used stolen identities of American citizens to fraudulently obtain federal student financial aid.
According to the indictment, he allegedly retained 30% of the proceeds and transferred the remaining 70% to associates in Kenya. Court documents cited by the DOJ indicate that Mogambi allegedly told an individual he received approximately $2,000 weekly and wanted a business through which he could cash larger cheques without paying taxes.
