A Kenyan national has been arrested in the United States over an alleged scheme to fraudulently obtain federal student financial aid using stolen identities of American citizens and redirect the funds to himself and associates in Kenya.
Francis Mogambi was indicted by a federal grand jury in Nebraska on October 19, 2026, on five counts of theft of government money and five counts of aggravated identity theft.
According to the indictment, the alleged scheme operated between November 2025 and May 2026, with Mogambi and his associates accused of using stolen identities to enrol American victims in educational institutions and obtain federal financial aid payments fraudulently.
Investigators allege that Mogambi retained 30 per cent of the proceeds and sent the remainder to his co-conspirators in Kenya.
Mogambi was arrested following the indictment and detained pending trial after the court determined that he posed a risk of failing to appear and a threat to public safety.
The case carries a stated intended loss of $20,000, while the charges include aggravated identity theft, which carries a mandatory minimum prison sentence of two years for each qualifying count, subject to the applicable legal requirements and sentencing rules.
Court documents further indicate that Mogambi attempted to recruit another individual into the scheme and disclosed details of the alleged operation, including claims that he received $2,000 per week.
He reportedly said he needed a business that would enable him to cash larger cheques without paying taxes.
Assistant Attorney General Colin McDonald said court documents detailed how Mogambi allegedly worked with associates in Kenya to steal American identities, enrol victims as students, redirect federal aid payments, retain a share of the proceeds and transfer the remainder to co-conspirators in Kenya.
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Mogambi arrived in the United States on May 15, 2024, after winning the Diversity Visa lottery. He was issued a DV1 visa and subsequently received a Permanent Resident Card.
The investigation has also led to an international asset seizure involving a cryptocurrency account linked to a Kenyan national allegedly connected to the fraud scheme.
In September 2026, representatives from the US Department of Justice’s Fraud Division and partner agencies visited Kenya to promote extradition, prosecution and the recovery of assets stolen from American taxpayers.
With assistance and intelligence from Kenyan law enforcement partners, investigators seized more than $750,000 (approximately Ksh97 million) from the cryptocurrency account.
US authorities described the seizure as the first international seizure of its kind in the history of the Fraud Division.
The operation highlights cross-border cooperation between American and Kenyan law enforcement agencies in investigating alleged financial crimes, pursuing suspects and recovering proceeds linked to fraud against US taxpayers.
Mogambi’s case remains subject to court proceedings, and the allegations against him have not yet been proven in court.
