Nigerian-born academic and former nonprofit executive, Nkechy Ezeh, has pleaded guilty in the United States to multiple charges bordering on wire fraud, conspiracy and tax evasion, in a case involving the diversion of more than $1.4m in public and donor funds.
Ezeh, an associate professor of education and former executive director at the Early Learning Neighbourhood Collaborative, entered the guilty plea before a US District Court in Michigan, admitting to her role in a years-long scheme to defraud the organisation.
According to court documents and the plea agreement, the fraud was carried out between 2017 and 2023 and involved the manipulation of internal payment systems and the creation of fake vendors and invoices.
She admitted that “from at least 2017 through 2023, she conspired with Sharon Killebrew and others to devise a scheme to defraud and obtain $1,400,000” from ELNC, a Michigan-based nonprofit funded by the US Department of Health and Human Services and private donors.
Investigators said Killebrew, who was ELNC’s director of finance and administration, facilitated the fraud by generating and approving fake invoices on Ezeh’s instructions.
“As part of the conspiracy, Defendant directed Sharon Killebrew… to generate approximately $470,100.00 in fictitious invoices for goods and services never received by ELNC and submit them for approval,” the court documents said.
Prosecutors said the proceeds were shared between Killebrew and Ezeh, with significant sums paid into Ezeh’s company, PONA Consulting, and to other associates linked to the scheme.
They also said Ezeh failed to disclose her conflicts of interest and involvement in another nonprofit, the Early Years Coalition, which was used to receive and divert grant funds.
Although EYC received over $227,000 in grant payments, prosecutors said it was not operational and did not run any preschools within the period it existed.
The court documents state that it “did not operate preschools in the six months it was operational,” and that Ezeh “caused EYC to pay $212,658.84 to herself, PONA Consulting, and other individuals and entities at her direction for work they did not perform”.
Prosecutors further disclosed that Ezeh created another entity, Global Open Learning and Development Preschools, which was allegedly incorporated using stolen identities and used to receive fraudulent payments.
“GOLD was never registered as a nonprofit organisation under Section 501(c)(3) of the Internal Revenue Code,” the court records said, adding that Ezeh caused GOLD to receive fraudulent payments for services never rendered.
In addition to the fraud allegations, Ezeh admitted that she failed to pay income taxes on the proceeds of the scheme over several years.
“Defendant knew that she had tax due and owing each year for tax years 2017–2022 and also knew that she was legally obligated to file truthful income tax returns,” the court documents said.
Prosecutors said she “willfully attempted to evade and defeat income tax due and owing” by concealing income through various entities and intermediaries, leaving an unpaid tax liability of about $390,174.
As part of the plea deal, Ezeh agreed to forfeit $1,193,900 and to make full restitution to ELNC and the US Internal Revenue Service, with the exact amounts to be determined at sentencing.
The wire fraud conspiracy count carries a possible sentence of up to 20 years in prison, while the tax evasion charge carries a maximum penalty of five years’ imprisonment, in addition to fines and post-release supervision.
