DOJ: Operation Ghostbusters has flagged 830,840 potentially fraudulent fed student aid IDs

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Justice Department Unveils Indictments in Nationwide ‘Ghost Student’ Fraud Scam Linked to Kenyan Network

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The Justice Department’s National Fraud Enforcement Division (Fraud Division), along with the U.S. Attorney’s Offices for the Eastern District of Virginia, Nebraska, and New Jersey announced indictments resulting from Operation Ghostbusters. Operation Ghostbusters is a nationwide investigation into a large-scale student-loan fraud scheme in which criminal actors created fraudulent Federal Student Aid (FAFSA) accounts using stolen U.S. citizen identities to enroll “ghost students” in educational institutions. After loan and grant disbursements, the refunds were diverted to bank accounts controlled by foreign actors and facilitated by U.S.-based money mules, including Kenyan nationals.

“Today, we are announcing the first results of Operation Ghostbusters — a nationwide effort to stop a major fraud scheme targeting federal student aid, low-income Americans, and the American taxpayer,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “The Department is charging five defendants and announcing the seizure of more than $750,000 in cryptocurrency tied to this scheme through a network associated with Kenyan nationals. This is the first international seizure of its kind in Kenya. If you steal American identities, if you steal taxpayer dollars, if you exploit programs meant to help students build a future — we will find you. Whether you are in Nebraska, New Jersey, Virginia, or Nairobi, we will pursue you.”

“Under President Trump and Secretary McMahon’s leadership, the Department of Education has saved taxpayers more than $2 billion in attempted student aid theft — ensuring students receive the critical funding they need, not fraudsters,” said Under Secretary Nicholas Kent for the Department of Education. “Every dollar that falls into the hands of a fraudster is a dollar that will not go to a student in need. Today’s action sends a strong message to fraudsters both at home and abroad: the Trump Administration is watching and will hold you accountable and protect American taxpayers.”

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Beginning in or about 2021, community colleges and universities across the United States identified fraudulent FAFSA applications that resulted in the disbursement of Federal Student Aid (FSA) program refunds to bank and other financial accounts opened in the names of individuals other than the students who had actually applied for the FSA program funds in the first instance. 

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Conspirators use stolen identity information from Americans to submit fraudulent FAFSA applications for “ghost students” in order to fraudulently obtain federal program funds. The “ghost students” never actually attend the college classes for which those funds were awarded. Instead, using super intelligence, fraudsters place “ghost” or fake students in classrooms to keep federal student loan funds flowing. Fraudsters even use super intelligence to complete required coursework at schools to maintain the “ghost student” scam.

These fraudsters are exploiting Americans who have never been to college before, preventing the Department of Education from cross-checking applicants. Many known victims have reported attaining only high school diplomas — and are shocked by their faked attendance at an institution hundreds of miles away.

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Capture them and cut off their hands.

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Great work DOJ!

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If only these foreigners put as much effort in building their country as they do scamming Americans. We are some dumb mofos that let imbeciles steal so much money

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