US Charges Five in Student Aid Fraud Scheme Linked to Kenyan Nationals, Seizes KSh97 Million in Crypto

US authorities have charged five individuals in connection with an alleged student financial aid fraud scheme involving stolen American identities and fictitious college students, with investigators linking part of the network to Kenyan nationals.

According to the US Department of Justice (DOJ), the suspects allegedly created so-called “ghost students” by using stolen identities to enrol at legitimate educational institutions and fraudulently obtain federal student loans and grants.

The operation, dubbed Operation Ghostbusters, has resulted in the seizure of more than $750,000 (approximately KSh97 million) in cryptocurrency believed to be connected to the alleged criminal network.

Prosecutors allege that refunds from the fraudulent student aid applications were diverted into bank accounts controlled by foreign actors, including individuals linked to Kenya.

Investigators say the probe has uncovered hundreds of participants and potentially fraudulent student aid accounts involving millions of dollars in losses.

The DOJ has vowed to pursue all those implicated, regardless of their location, warning that individuals exploiting federal student assistance programmes will be held accountable.

The alleged scheme targeted funds intended to help genuine students finance their college education, raising concerns about the misuse of public resources and the integrity of US financial aid programmes.