Federal authorities have announced charges against five people and a cryptocurrency seizure in a nationwide investigation of fraudulent student-aid applications made with stolen identities.
Prosecutors say the scheme used false Federal Student Aid accounts to enroll “ghost students,” direct loan and grant refunds to U.S. bank accounts, and transfer money to foreign actors, including people in Kenya. Cases in New Jersey, Virginia and Nebraska allege intended losses ranging from about $20,000 to $1.5 million. Three New Jersey defendants have been arrested; a Virginia defendant is charged under seal; and a Nebraska defendant is detained pending trial.
Authorities also reported seizing more than $750,000 in cryptocurrency linked to the investigation and identifying hundreds of thousands of potentially fraudulent aid accounts. Those broader estimates remain investigative claims. The complaints and indictments are allegations, and every defendant is presumed innocent. The Justice Department’s case announcement sets out the separate proceedings.
