A former nonprofit executive in West Michigan has agreed to plead guilty to federal charges stemming from a wide-ranging embezzlement scheme that prosecutors say drained more than $1.4 million from an organization serving low-income children and families.
Nkechy Ezeh, founder and former CEO of the Early Learning Neighborhood Collaborative (ELNC), entered a plea agreement with federal authorities this week, admitting to conspiracy to commit wire fraud and tax evasion, according to court records filed in U.S. District Court. The case follows her arrest by the Federal Bureau of Investigation (FBI).
Under the plea deal, Ezeh has agreed to pay approximately $1.4 million in restitution and nearly $400,000 in back taxes to the Internal Revenue Service (IRS).
Nonprofit forced to shut down
ELNC, which operated in Kent County, Kalamazoo and Battle Creek, worked with public and private partners to prepare at-risk preschool children for kindergarten. Court documents show the nonprofit supported nearly **8,000 children and families** over more than a decade before it was forced to close.
Federal prosecutors say Ezeh conspired with ELNC’s former bookkeeper, Sharon Kay Killebrew, to systematically siphon funds from the organization, leaving it financially crippled and unable to continue operations.
According to sentencing memoranda, Ezeh directed Killebrew to generate nearly $500,000 in fraudulent invoices, which Ezeh then approved in her role as CEO.
“They left almost no stone unturned in their quest to siphon money,” prosecutors wrote in court filings.
Expanding the scheme
Authorities say the fraud grew increasingly sophisticated. Ezeh allegedly created two additional daycare entities, including one registered as a nonprofit, to funnel hundreds of thousands of dollars to herself, Killebrew and other unidentified individuals for services that were never performed.
Prosecutors also detailed the misuse of nonprofit funds for personal trave, including trips to Hawaii and overseas destinations, along with other unauthorized expenses.
Co-conspirator already sentenced
Killebrew pleaded guilty earlier this year and was sentenced to 54 months in federal prison, along with an order to pay $1.4 million in restitution. In a statement following her sentencing, ELNC’s board said the fraud resulted in the loss of 35 jobs and left vulnerable families without critical early-learning support.
Assistant U.S. Attorney Clay Stiffler stated that the most significant harm was done to the children who depended on the program.
“These were mostly children of color under the age of five, many living below the federal poverty level,” Stiffler wrote, noting the broader social impact of the case.
A cautionary tale for the nonprofit sector
The case has drawn attention to financial oversight and accountability within the U.S. nonprofit sector, particularly organizations entrusted with public funds and grants aimed at serving vulnerable populations.
Federal prosecutors argue that while restitution may partially address the financial losses, the damage caused to families and communities is lasting.
