According to a report by the British Broadcasting Corporation (BBC) on October 30th, an investigation called "Ghost Catcher Operation" is underway targeting individuals suspected of using stolen identities to register fake students at universities and apply for federal grants.
In May 2024, Francis Mogane arrived in the United States after winning a lottery for diverse immigration visas. This lottery program provides opportunities for people from all over the world to become permanent residents. Just over two years later, this Kenyan citizen was investigated for allegedly being involved in a scheme that fraudulently exploited the federal student financial aid system across the United States.
On October 19, 2026, a grand jury in Nebraska charged Morgan with five counts of theft of government funds and five counts of serious identity theft. The prosecution alleged that between November 2025 and May 2026, he conspired with his Kenyan accomplices to steal the personal information of American citizens and used this information to falsely register students at American universities.
According to reports, once these fake students are admitted, Mogambi transfers their scholarships to his own account, keeping 30% of the money, and sending the rest to his accomplices in Kenya. The expected loss for this case is $20,000 (approximately 133,000 yuan).
The BBC revealed that this is just one of the cases involving the ‘Ghosthunting Operation’. U.S. authorities said that this operation has so far led to five lawsuits, and another 40 investigations are still underway. Fraudsters have stolen personal identifiable information and used it to obtain federal student funding, affecting hundreds of people.
Stolen personal information is sometimes sold online for prices ranging from $4 to $8. Scammers target low-income Americans who have never had the opportunity to attend college.
In a press conference on October 29 to announce the first batch of charges in this investigation, Colin M. McDonald, head of the National Fraud Enforcement Division of the Department of Justice and assistant attorney general, vowed to hold those involved accountable. “If you steal taxpayers’ money and use a program designed to help students, we are determined to find you and prosecute you,” he said.
The Department of Justice stated that the individuals behind the fraud used artificial intelligence to trick students into entering classrooms and completing assignments, creating the illusion that these students were actually attending university, thereby allowing scholarships to continue being awarded.
The goal is to keep "Ghost Students" in the school for as long as possible, and collect taxes from taxpayers semester by semester. McDonnally said this.
However, the consequences go far beyond the economic losses suffered by the US government: those whose identities have been stolen may find themselves burdened with unexpected student loan debts, even if they have never attended college.
McDonald described the victim's situation as follows: "His identity was stolen, and his credit is now at risk, yet the bill still bears his name." He also stated that in 2024, nearly one-third of applicants for community colleges in California were identified as having engaged in fraud, indicating that the scale of the fraud is quite significant.
In September and October 2026, investigators discovered 830,000 funding identification numbers that could be related to nearly $130 million. They recommended that the Ministry of Education discontinue using these numbers. The amounts involved were likely related to fraudulent accounts for grants, rather than confirmed losses.
"In an instant, the money disappeared, and it often flowed towards Kenya and other places," McDonald said.
According to the Department of Justice, if convicted, Morgand faces a minimum mandatory sentence of 10 years. In addition to imprisonment, convicted individuals will also be subject to asset confiscation orders and orders to compensate the victims.
