DOJ launches nationwide probe into ghost-student fraud

The Justice Department’s Operation Ghostbusters has charged five people in a nationwide investigation into an alleged scheme using stolen identities to enroll fictitious students at U.S. colleges and obtain federal student loans and grants. Prosecutors allege aid was routed through U.S. money mules to associates in Kenya; a Nebraska case alleges Kenyan national Francis Mogambi took a share, while three New Jersey defendants allegedly helped transfer about $1.3 million. Authorities seized more than $750,000 in cryptocurrency, and investigators say some schemes used AI and other tactics to make fake students appear to attend classes. The broader fraud may have caused more than $200 million in losses since 2021; more than 830,000 accounts have been flagged, while at least $32 million in losses have been tied to specific suspects. The FBI has opened more than 40 investigations across 26 field offices, and victims may face fraudulent loan records and damaged credit; the allegations have not been proven in court.