US Indicts Kenyan National in Student Aid Fraud Involving Millions

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 Department of Justice said Francis Mugambi was charged with five counts of theft of government money and five counts of aggravated identity theft following an indictment returned by a federal grand jury in Nebraska on October 19.

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The case, filed in the District of Nebraska, involves an alleged scheme to defraud the US government through the misuse of stolen identities to access student financial assistance.

According to the indictment, Mogambi 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 the victims in educational institutions.

The alleged scheme involved redirecting federal student financial aid payments to Mogambi, who reportedly retained 30 per cent of the proceeds and sent the remainder to his co-conspirators in Kenya.

"According to court documents, Mugambi allegedly worked with associates in Kenya to steal US identities, enrol victims as students, redirect federal aid payments, retain a share of the proceeds and send the remainder to co-conspirators in Kenya," Assistant Attorney General Colin McDonald said.

Court documents further indicated that Mogambi attempted to recruit another individual into the alleged scheme and openly discussed how it operated.

He reportedly told the individual that he received $2,000 per week and needed a business that would enable him to cash larger cheques without paying taxes.

Mogambi was arrested following the indictment and detained pending trial. The court reportedly determined that he posed a risk of failing to appear and a threat to public safety.

The charges carry mandatory minimum penalties relating to the alleged use of stolen identities, with the indictment exposing him to significant prison time if convicted.

Records indicate that Mogambi entered 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.

Elsewhere, the United States Immigration and Customs Enforcement (ICE) arrested a Kenyan national employed by the Washington State Department of Children, Youth, and Families (WA DCYF). 

In a statement on Thursday, ICE said the Kenyan, identified as Stanley Robert Kungu Muthee, had overstayed his visa. 

"ICE arrested a Kenyan illegal alien who overstayed his visa and was employed by Washington State’s Department of Children, Youth, and Families. 

"Illegal aliens have no business working in government agencies responsible for the safety and well-being of American children," ICE stated. 

Muthee was arrested by ICE officials from the Seattle office on Monday, October 26, during a traffic stop. 

The Kenyan national was wearing a WA DCYF jacket at the time of his arrest and admitted to being employed by the department. 

Muthee first flew into the U.S. in June 2019 via a B-2/tourist visa, but never left and remained in the country illegally.

The Washington State Department of Children, Youth, and Families confirmed that Muthee was employed by the department and had worked there since August 2024.

According to WA DCFY Director of Communications Nancy Gutierrez, Muthee provided the appropriate documentation when he was hired, including a valid United States Citizenship and Immigration Services (USCIS) number with no expiration date.