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Justice Department Charges Five in $2.9M Student Aid Fraud

By Drooid · Oct 30, 2026 · How we work

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Summary

U.S. Justice Department charged five individuals in a federal student-aid fraud scheme.
The indictment alleges the suspects stole $2.9 million from federal student-aid programs.
Assistant Attorney General Colin McDonald said AI created ‘ghost students’ to complete online coursework.
Three New Jersey defendants moved about $1.3 million to Kenya as money mules.
FBI special agent Heith Janke reported over $32 million in identified losses, with potential losses in the hundreds of millions.

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U.S. Justice Department charged five individuals in a federal student-aid fraud scheme.
The indictment alleges the suspects stole $2.9 million from federal student-aid programs.
Assistant Attorney General Colin McDonald said AI created ‘ghost students’ to complete online coursework.
Three New Jersey defendants moved about $1.3 million to Kenya as money mules.
FBI special agent Heith Janke reported over $32 million in identified losses, with potential losses in the hundreds of millions.