Federal investigators have identified 830,840 potentially fraudulent Federal Student Aid login IDs connected to nearly $130 million in aid, the Justice Department said as it announced the first five defendants in a nationwide crackdown that includes a case in Nebraska.
The operation, called Operation Ghostbusters, focuses on alleged schemes in which stolen identities were used to enroll people in online colleges and obtain federal grants or loans. After schools received tuition and fees, refunds were allegedly directed to bank accounts controlled by people involved in the schemes rather than to the individuals whose identities appeared on the applications.
The Nebraska case
A sworn Lincoln Police affidavit filed in federal court describes one of the alleged identity-theft cases. The affidavit was submitted in United States v. Mogambi, a case in the U.S. District Court for the District of Nebraska. The filing was dated Oct. 26.
According to the affidavit, a Wisconsin man discovered an unfamiliar student loan on his credit report and learned that he had been enrolled at Colorado Technical University. He told a Lincoln police investigator on July 10 that he had never enrolled at the school, applied for the aid or authorized another person to cash a check issued in his name.
The investigation also described other people who found loans they did not recognize. An Ohio man found a loan connected to Grand Canyon University when he was trying to purchase a condominium, while a New York resident learned of another unfamiliar loan, the affidavit said.
- The Justice Department identified 830,840 potentially fraudulent aid login IDs.
- The accounts were linked to nearly $130 million in federal grants or loans.
- Federal authorities also seized more than $750,000 in cryptocurrency with help from Kenyan authorities.
Federal investigation
The Justice Department said the first five defendants are spread across federal cases in Nebraska, New Jersey and Virginia. The allegations involve the use of personal information to create or take over student-aid accounts, enroll people at colleges and redirect refunds.
The nearly $130 million figure represents aid connected to accounts investigators flagged as potentially fraudulent. It has not been established as a confirmed theft total. Separately, the FBI said it has identified more than $32 million in losses in similar ghost-student schemes.
The Nebraska matter remains a federal criminal case. Allegations in court filings are not findings of guilt, and defendants are presumed innocent unless convicted. The Justice Department’s announcement and the Lincoln Police affidavit describe the investigation and alleged conduct; they do not establish that every account identified by investigators involved a completed theft.
