Justice Department Launches Student Aid Fraud Crackdown, Indicting 5 and Seizing $750,000
Updated
Updated · Fox News · Oct 29
Justice Department Launches Student Aid Fraud Crackdown, Indicting 5 and Seizing $750,000
2 articles · Updated · Fox News · Oct 29
Summary
More than 40 cases across 26 FBI field offices were opened under “Operation Ghostbusters,” a nationwide push against an international scheme the Justice Department says may have cost taxpayers several hundred million dollars since 2021.
Investigators say organized syndicates stole working Americans’ identities, used them to enroll fake “ghost students” at colleges, and diverted leftover federal grants and loans to offshore accounts after tuition and fees were paid.
Five defendants have been indicted, and authorities have seized more than $750,000 in laundered cryptocurrency tied to networks in Kenya.
Kenya has become an early focus of the probe, with U.S. officials saying teams are on the ground there as prosecutors trace money mules and front businesses, including a Nairobi safari company.
The alleged fraud left victims with damaged credit and education bills for classes they never took, underscoring the vulnerability of online enrollment and aid systems.