A Kenyan national has been indicted in the United States over allegations that he fraudulently obtained federal student financial aid using stolen identities of American citizens and worked with accomplices in Kenya to distribute the proceeds.
In a statement on Thursday, October 29, the US Department of Justice said Francis Mugambi faces five counts of theft of government money and five counts of aggravated identity theft.
A federal grand jury in Nebraska returned the indictment on October 19, with the case filed in the District of Nebraska.
US indicts Kenyan over alleged theft of federal student aid. Photo: Courtesy.
The charges relate to an alleged scheme to defraud the US government by using stolen identities to access federal student financial assistance.
According to the indictment, Mugambi allegedly carried out the scheme between November 2025 and May 2026, working with associates in Kenya to steal the identities of US citizens and fraudulently enrol them in educational institutions.
The suspects allegedly redirected federal student financial aid payments to Mugambi, who retained 30 per cent of the proceeds and transferred the remaining amount to his accomplices in Kenya.
Court documents further indicate that Mugambi attempted to recruit another individual into the alleged operation and explained how the scheme worked.
He reportedly disclosed that he received $2,000 per week and was looking for a business that would allow him to cash larger cheques without paying taxes.
Mugambi was arrested following the indictment and detained pending trial. The court reportedly considered him a flight risk and a threat to public safety when making the detention decision.
The aggravated identity theft charges carry mandatory minimum prison sentences, while the overall charges expose him to significant prison time if convicted.
Records indicate that Mugambi entered the United States on May 15, 2024, after winning the Diversity Visa lottery. He received a DV1 visa before obtaining a Permanent Resident Card.
