Justice Department Charges Five in Student Aid Fraud Probe

The Justice Department announced Operation Ghostbusters, charging five people and seizing more than $750,000 in cryptocurrency in an investigation of alleged fraud involving federal student aid and stolen identities. Federal officials said the operation spans more than 40 cases across 26 FBI field offices and more than 20 U.S. attorneys’ offices. The charges involve alleged schemes in several states, including New Jersey, Nebraska and Virginia, and the cryptocurrency was linked to a network associated with Kenya. The defendants are presumed innocent unless proven guilty in court. Assistant Attorney General Colin McDonald said investigators had identified $32 million in losses tied to student-aid fraud schemes. He estimated broader losses could exceed $200 million. The figures describe different scopes: the larger amount is an estimate, not a confirmed total. Officials have not established how much of that broader estimate will ultimately be substantiated. According to McDonald, perpetrators used stolen personal information to create fictitious student identities, enroll them in colleges and apply for federal financial aid. After schools deducted tuition and fees, refunds could...