A Kenyan citizen living in Lincoln, Nebraska, has been charged in connection with an alleged scheme in which the identities of American citizens were stolen, used to enrol them in colleges without their knowledge, and then used to collect federal student aid.

Francis Smith Mogambi faces a charge of second-degree forgery, a Class 2A felony under Nebraska law, according to an arrest affidavit reported by Lincoln broadcaster 10/11 NOW. Police put the value of the known forged cheques he cashed at $20,397, about Sh2.56 million, the Daily Nation reported. The case has drawn wide attention in Kenya and among the diaspora this week.

How the alleged scheme worked

Investigators allege that Mogambi worked with family members in Kenya to obtain the personal details of US citizens and use them to sign the victims up for online courses at American colleges and universities. College records reviewed by police showed that the maximum amount of federal student loans was requested and paid out for each of the fake students, 10/11 NOW reported.

The financial aid cheques were allegedly mailed to an address in Lincoln linked to Mogambi, endorsed over to him and deposited into his own bank accounts. Police said the endorsements read "pay to the order of Francis Smith Mogambi" and that the handwriting and signatures appeared to match. Part of the money was allegedly sent to Kenya.

Detectives subpoenaed records from Bank of America, Wells Fargo, US Bank and Chase, and reviewed electronic copies of cheques issued by institutions including Grand Canyon University, American Public University, Colorado Technical University, Ultimate Medical Academy and Chemeketa Community College.

Recruitment attempt sparked probe

The investigation began in April, when police were called to the University of Nebraska-Lincoln Student Union over a reported fraud. A witness told officers that Mogambi had tried to recruit him into the scheme, offering about $2,000 a week, according to the affidavit as reported by 10/11 NOW.

Several victims later told police they had no idea they had been enrolled in college. A Wisconsin man said on July 10 that he only discovered he was registered at Colorado Technical University when a student loan appeared on his credit report. Others said they had never applied for loans and had not authorised anyone to cash cheques in their names.

Police said Mogambi declined to be interviewed. The total number of people affected has not been disclosed, and investigators are still establishing the full extent of the alleged fraud, Mwakilishi reported.

Wider concern over student aid fraud

The case adds to growing scrutiny in the United States of so-called "ghost student" schemes, in which fraudsters use stolen or fake identities to enrol in online classes and siphon off financial aid. US authorities have tightened identity checks on federal aid applications in response to a surge in such claims.

Kenyans have featured in several US fraud cases in recent years, including an ongoing extradition bid in which the US is seeking six Kenyans over an alleged business email compromise scheme that targeted government entities and universities. There is no indication that the two cases are connected.

The allegations against Mogambi have not been tested in court. He is presumed innocent unless proven guilty.

Photos: 10/11 NOW (file); Grand Island Independent (file).