US Justice Department Charges Five in $200M Fraud Scheme

The United States Department of Justice disclosed that a nationwide fraud scheme has allegedly cost the country more than $200 million. This scheme involved stolen identities, fake student enrollments, and diverted federal education funds, with connections to a network of Kenyan nationals.

Assistant Attorney General Colin McDonald announced the first results of Operation Ghostbusters, which targets fraud against federal student aid. Five defendants have been charged, and over $750,000 in cryptocurrency linked to the scheme has been seized.

The fraudulent activities included stealing personal information of American citizens to submit fake applications for federal student loans and grants, leading to the creation of "ghost students" who did not attend classes. In New Jersey, three defendants (Mabed Patricia Utate-Alberto, Patricia Arisleydi Perez, and George Arturo Alfau Mendez) were accused of conspiring with individuals in Kenya from March 2021 to January 2026 to obtain over $1 million in federal student aid.

They have been arrested, and charges are expected against two co-conspirators based in Kenya.