White House

DOJ Charges Five in Operation Ghostbusters Student Loan Fraud Scheme, Seizes $750K in Crypto

Gary FranchiOctober 29, 2026 ET1 views
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The Department of Justice announced charges against five defendants and the seizure of more than $750,000 in cryptocurrency tied to a sprawling federal student loan fraud scheme that spanned the United States and Kenya. The announcement came Thursday from Associate Attorney General McDonald, who detailed the results of Operation Ghostbusters, a DOJ investigation into what prosecutors describe as a network using stolen identities to enroll as fake students and redirect federal aid payments.

Indictments in Nebraska and New Jersey

In Nebraska, a grand jury indicted Francis Maghambi, a Kenyan national, on charges of theft of government money and aggravated identity theft. According to court documents, Maghambi allegedly worked with associates in Kenya to steal U.S. identities, enroll victims as students, redirect federal aid payments, keep a share for himself, and send the rest to co-conspirators in Kenya.

In New Jersey, four additional defendants—Mabed, Patricia Utate Alberto, Aris Lady Perez, and George Arturo Alpha Mendes—face charges of conspiracy to commit wire fraud. They allegedly acted as money mules in a scheme involving hundreds of ghost students and more than $1.3 million in proceeds. Prosecutors alleged that money was sent overseas, including to individuals connected to a Kenya-based safari business used as a cover.

First International Crypto Seizure in Kenya

McDonald announced the seizure of more than $750,000 in cryptocurrency tied to the scheme, describing it as "the first international seizure of its kind in Kenya." The funds were allegedly laundered through a network associated with Kenyan nationals.

"Today, we are announcing charges against five defendants and the seizure of more than $750,000 in cryptocurrency tied to this scheme and laundered through a network associated with Kenyan nationals," McDonald said.

Coordinated Action with Education Department

The DOJ is also coordinating with the Department of Education to prevent further fraud. "We are also acting urgently with Secretary McMahon and the Department of Education to identify and shut off fraudulent accounts to stop this money from going to the fraudsters," McDonald said.

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Gary Franchi
Gary Franchi

Chief White House Correspondent at Next News Network. Executive Producer and Lead Anchor.

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