Michigan nonprofit founder jailed for $1.4m fraud involving US children’s welfare funds
A United States federal court has sentenced a Michigan-based nonprofit founder, Dr. Nkechy Ezeh, to 70 months in prison for orchestrating a fraud scheme that diverted about $1.4 million intended for vulnerable preschool children.
Ezeh, 61, of Kent County, Michigan, was convicted for misappropriating taxpayer and donor funds meant to support underserved children through the Early Learning Neighborhood Collaborative (ELNC), a nonprofit she founded.
She also received a concurrent 60-month sentence for tax evasion, according to the U.S. Department of Justice.
Chief U.S. District Judge Hala Y. Jarbou described the scheme as “brazen and widespread,” calling Ezeh “a fraud and a thief” during sentencing. The court ordered her to pay $1.4 million in restitution to victims and more than $390,000 to the Internal Revenue Service.
Prosecutors said the funds were originally sourced from federal programmes such as the Department of Health and Human Services’ Early Head Start initiative, the U.S. Department of Education, and private donors aimed at supporting early childhood education in low-income communities.
Authorities alleged that Ezeh used the stolen money for personal expenses, including luxury travel, a family wedding, and payments routed through “ghost payroll” arrangements that funneled money to relatives for little or no work.
Investigators also said she used intermediaries to transfer funds, including moving money to family members in Nigeria.
Her nonprofit, ELNC, which once provided meals, transportation, and educational support to preschoolers in underserved areas, shut down in 2023 following the scandal, leaving dozens of employees jobless and disrupting services for children in Michigan communities.
A co-conspirator, former bookkeeper Sharon Killebrew, had earlier been sentenced to 54 months in prison for her role in the scheme.
Officials from the U.S. Department of Health and Human Services Office of Inspector General and IRS Criminal Investigation led the probe, describing the case as a serious breach of public trust involving funds meant for disadvantaged children.
Authorities emphasized that the case highlights ongoing efforts to protect federal grant programmes from fraud and abuse.
