Federal prosecutors charge 5 people in an ongoing investigation of 'ghost students' fraud

Federal prosecutors on Thursday announced charges against five individuals they allege participated in schemes to steal federal student aid. 

The charges are the first brought as part of a federal investigation Just the News reported on in June 2025, in which the alleged scammers used fake or stolen identities to enroll in classes online. From there, the accused scammers secure student-aid grants and loans before disappearing. 

The Justice Department filed charges against five individuals in Nebraska, Virginia and New Jersey who are accused of conspiring with foreign nationals in apparently unrelated schemes resulting in $2.9 million in federal student financial aid fraud, Assistant Attorney General Colin McDonald said in a press conference on Thursday, ABC News reported. 

The charges include theft of government property, aggravated identity theft, and conspiracy to commit wire fraud.

The suspect in Nebraska was detained pending trial after pleading not guilty. The three suspects in New Jersey have not entered pleas, and the indictment charging the suspect in Virginia is currently under seal.