United States (US)-based Nigerian woman, Nkechi Ezeh, has pleaded guilty to master-minding a sophisticated wire fraud and tax evasion scheme that defrauded Michigan taxpayers of more than $1 million (£780,000).
Ezeh, a former Aquinas College professor, pleaded guilty this week to charges related to the systematic theft of funds meant for early education initiatives for poor children.
The fallout from the scandal has already led to the closure of a major local nonprofit organization.
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fraud mechanism
The court heard how Ezeh, while acting as CEO of the Early Learning Neighborhood Collaborative (ELNC), used his position to divert taxpayer money to himself, friends and family members. Working with the nonprofit's bookkeeper, Sharon Killebrew.
Ezeh created approximately $500,000 in fraudulent invoices and set up two fictitious daycare businesses to conceal the movement of the stolen funds.
The embezzled money allegedly financed a lavish lifestyle, including international travel to Hawaii, Liberia and Nigeria.
While Killebrew was previously sentenced to 54 months in prison, Ezeh now faces up to 20 years in prison for wire fraud and an additional five years for tax evasion.
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Impact on vulnerable communities
The collapse of ELNC has had a devastating impact on the local community, resulting in the loss of 35 jobs and withdrawal of support for families in some of the most disadvantaged areas of Michigan.
Assistant U.S. Attorney Clay Stifler highlighted the profile of those harmed by the scheme:
“The victims were mostly children of color under the age of five, 72 percent of whom lived below the federal poverty level in some of the poorest neighborhoods of Kent County, Kalamazoo and Battle Creek.”
ELNC President Amy DeLeeuw expressed her outrage after the court proceedings:
“His theft of millions of dollars meant for the most vulnerable children was brazen, pervasive and unconscionable. To date, Nkechi has made no effort to repay any of the millions of dollars he stole.”
Institutional reputation and accountability
Before the fraud was discovered, Ezeh was a well-known figure in Michigan educational and political circles. She has received numerous awards, including “Woman of the Year” awards, and was appointed to the State Executive Committee by Governor Gretchen Whitmer in 2020.
Responding to the guilty plea, Ezeh's defense lawyer Marie Chartier said:
“Ezeh is committed to taking full responsibility and accountability for his actions. He is deeply remorseful to anyone he has negatively impacted.”
Ezeh has agreed to pay $1.4 million in restitution to government agencies and about $400,000 in unpaid taxes. A formal sentencing hearing is scheduled for May 13.
