Former Nonprofit CEO Sentenced for $1.4 Million Fraud Scheme
A U.S. federal court has imposed a 70-month prison sentence on Dr. Nkesie Eze, a former Nigerian-born nonprofit CEO, for her role in a $1.4 million fraud scheme that misappropriated taxpayer funds and donations intended for vulnerable preschool children.
The sentencing, announced by the U.S. Attorney’s Office for the Western District of Michigan, was delivered by Chief U.S. District Judge Hala Y. Jarbu. In addition to the fraud sentence, Judge Jarbu also sentenced Eze to 60 months for tax evasion, requiring her to repay $1.4 million in restitution and $390,174 to the Internal Revenue Service.
The 61-year-old Eze, who resided in Kent County, Michigan, founded and served as CEO of the Early Learning Neighborhood Collaborative (ELNC), a nonprofit dedicated to providing early childhood educational services in underserved areas. She previously held an academic position as an associate professor and director of the early childhood education program at Aquinas College.
Upon sentencing, Eze was taken into federal custody. Judge Jarbu described her actions as a “brazen and far-reaching” scheme that exploited funds designated for the community’s most vulnerable children.
U.S. Attorney Timothy Verhey expressed strong condemnation of Eze’s actions, asserting that her greed led to the misappropriation of money intended for low-income children. He emphasized that the funds she stole could have provided essential resources for hundreds of West Michigan families, making the sentence appropriate in the case.
Court records revealed that Eze utilized the embezzled funds to cover personal expenses, including lavish trips to Hawaii, Europe, and Africa, as well as a family wedding. She is also accused of placing relatives on “ghost paychecks,” enabling them to receive substantial payments for little or no work. Furthermore, allegations indicate that she used intermediaries to transfer some of the stolen money to her family members in Nigeria.
The ELNC had received funding from various federal programs, including Head Start and the Department of Education, along with private donations, providing meals, transportation, and critical support services to children in low-income neighborhoods. Following the fraud revelations, the ELNC was forced to close its doors in 2023, resulting in the loss of funding for multiple preschools and the termination of 35 employees.
Sharon Killebrew, identified as a co-conspirator and former bookkeeper for the organization, has already been sentenced to 54 months in prison for her involvement in the scheme. U.S. authorities emphasized that this case underscores the exploitation of federal aid programs and the negative ramifications for vulnerable communities, particularly low-income children. The investigation was coordinated by the U.S. Department of Health and Human Services Office of Inspector General and the Internal Revenue Service’s Criminal Investigation Division, with Assistant U.S. Attorney Clay Stiffler leading the prosecution.
