A United States federal court has sentenced Nigerian-born former nonprofit chief executive, Nkechy Ezeh, to 70 months imprisonment for orchestrating a $1.4 million fraud scheme involving taxpayer and donor funds meant for vulnerable preschool children.
The sentencing was announced in a press release on Wednesday by the Office of the US Attorney for the Western District of Michigan.
The sentence was delivered by Chief US District Judge Hala Y. Jarbou, who also imposed a concurrent 60-month sentence for tax evasion and ordered Ezeh to pay $1.4 million in restitution as well as $390,174 to the U.S. Internal Revenue Service.
Ezeh, 61, of Kent County, Michigan, was the founder and former Chief Executive Officer of Early Learning Neighborhood Collaborative, a West Michigan nonprofit that provided early childhood services in underserved communities.
She also served as an Associate Professor of Education and Director of the Early Childhood Education Program at Aquinas College.
The court immediately remanded her into federal custody after sentencing.
During the proceedings, Judge Jarbou described Ezeh as a fraudster and thief, adding that the scheme was brazen, widespread, and involved funds meant for some of the region’s most vulnerable children.
The US Attorney for the Western District of Michigan, Timothy VerHey, stated that Ezeh diverted funds intended for low-income children for personal use.
VerHey condemned Ezeh’s actions, stating that she stole taxpayer and private donor funds meant for children from low-income communities and diverted the money for her personal benefit instead of supporting vulnerable families.
He added that the stolen funds could have been used to support hundreds of children and families across West Michigan, describing the sentence handed down by the court as appropriate.
According to court filings, Ezeh used the stolen funds to finance personal expenses, including trips to Hawaii, Europe, and Africa, as well as a family wedding.
Prosecutors also disclosed that she placed relatives on a ghost payroll, enabling them to receive hundreds of thousands of dollars for little or no work.
She was further accused of using intermediaries to transfer stolen funds to family members in Nigeria.
The nonprofit organisation, ELNC, received funding from US federal programmes including Head Start, the Department of Education, and private donors. It provided meals, transportation, and support services to children in low-income communities.
Following the fraud scandal, ELNC shut down in 2023, resulting in the loss of funding for several preschools and the dismissal of 35 employees.
A former bookkeeper at the organisation, Sharon Killebrew, who was identified as a co-conspirator, had earlier been sentenced to 54 months imprisonment for her role in the scheme.
US authorities stated that the case highlights the abuse of federal grants and the devastating impact such crimes have on vulnerable communities, especially children in low-income neighbourhoods.
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General and the Internal Revenue Service–Criminal Investigation unit, while Assistant U.S. Attorney Clay Stiffler prosecuted the case.