In a significant legal development, a Nigerian woman based in the United States has agreed to plead guilty to federal charges of wire fraud and tax evasion, bringing a years-long case closer to resolution. The founder of a now-defunct early childhood education nonprofit is accused of orchestrating a scheme that siphoned approximately $1.4 million from the organization.
The Guilty Plea and Charges
Nkechy Ezeh, the founder and former chief executive of the Early Learning Neighborhood Collaborative (ELNC), has reached a plea agreement with federal prosecutors. This move allows her to avoid indictment by a grand jury. She is scheduled to formally enter her guilty plea on January 14 before US District Judge Hala Jarbou in Lansing, Michigan.
Under the terms of the agreement, Ezeh admitted to conspiring with others to defraud the nonprofit of about $1.4 million. The stolen funds included money from the US Department of Health and Human Services’ Early Head Start programme and private donors. Prosecutors also stated that she failed to report personal and business income between 2017 and 2022, resulting in additional tax losses estimated at $390,000.
Details of the Fraudulent Scheme
Court documents reveal that the embezzled funds were used for personal expenses, including international travel to destinations such as Hawaii, Liberia, and Nigeria. Investigators detailed how Ezeh directed her former bookkeeper, Sharon Killebrew, to create fictitious invoices for goods and services that were never delivered. The money was then funneled to Ezeh, her company, and others acting under her direction.
In one particularly egregious instance, Ezeh allegedly instructed that a new nonprofit be incorporated using the stolen identities of three individuals. Killebrew, aged 70, has already been sentenced to four years and six months in prison after pleading guilty to her role in the conspiracy to defraud a federally funded programme and to tax evasion. Prosecutors said the duo worked together to embezzle more than $1.17 million.
Impact and Aftermath
The collapse of ELNC and the misappropriation of funds had a devastating impact on the communities it served. The organization, founded around 2011, supported early childhood education programmes in vulnerable communities across Grand Rapids, Kalamazoo, and Battle Creek in Michigan. Its closure in 2023 disrupted essential services for children in some of the state's poorest neighborhoods.
The ELNC board issued a statement welcoming the plea agreement as a step towards accountability. "The millions of dollars taken from ELNC forced the organisation to close its doors and deprived children... of essential early childhood services needed to prepare them for kindergarten success," the board said. Other agencies, including Kent Intermediate School District and First Steps Kent, had to step in to maintain these critical services.
In a statement provided through her lawyer, Mary Chartier, Ezeh expressed remorse. "Ms Ezeh is committed to taking full responsibility and accountability for her actions. She is deeply remorseful to anyone who has been negatively impacted." This marks a stark contrast to her previous stance, where she had denied all wrongdoing and claimed allegations in a 2023 civil lawsuit were false and retaliatory.
The wire fraud charge carries a potential maximum sentence of up to 20 years in prison, while tax evasion carries up to 5 years. As part of her plea deal, Ezeh has agreed to pay restitution covering both the losses to ELNC and the unpaid taxes. For the communities affected, the plea represents a long-awaited move towards justice after nearly three years of investigations and legal battles.
