$1m Childcare Fraud: US-Based Nigerian Professor Pleads Guilty

A United States (US)-based Nigerian former professor, Nkechy Ezeh has pleaded guilty to master-minding a sophisticated wire fraud and tax evasion scheme that defrauded Michigan taxpayers of over $1 million (£780,000), according to Businessday NG.

Ezeh, who was a professor at Aquinas College pleaded guilty this week to charges involving the systematic theft of funds intended for early learning initiatives for impoverished children.

The fallout from the scandal has already forced the closure of a prominent local non-profit organisation.

The mechanism of the fraud
The court heard how Ezeh, acting as CEO of the Early Learning Neighborhood Collaborative (ELNC), used her position to funnel taxpayer money to herself, friends, and family members. Working alongside the non-profit’s bookkeeper, Sharon Killebrew.

Ezeh created nearly $500,000 in fraudulent invoices and established two fictitious daycare businesses to mask the movement of stolen funds.

The embezzled money reportedly 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 for wire fraud and an additional five years for tax evasion.

Impact on vulnerable communities
The collapse of the ELNC has had a devastating effect on the local community, resulting in the loss of 35 jobs and the withdrawal of support for families in some of Michigan’s most deprived areas.

Clay Stiffler, assistant U.S. attorney, highlighted the profile of those harmed by the scheme:

“The victims were mostly children of colour under the age of five years old, 72 percent of whom lived below the federal poverty level in some of the poorest neighbourhoods in Kent County, Kalamazoo, and Battle Creek.”

Amy DeLeeuw, President of the ELNC, expressed her outrage following the court proceedings:

“Her theft of millions of dollars intended for the most vulnerable of children was brazen, all-encompassing, and unconscionable. To date, Nkechy has made no effort to repay any of the millions of dollars she stole.”

Institutional reputation and accountability
Prior to the discovery of the fraud, Ezeh was a celebrated figure in Michigan’s educational and political circles. She had received numerous accolades, including “Woman of the Year” awards, and was appointed to a state executive committee by Governor Gretchen Whitmer in 2020.

Responding to the guilty plea, Mary Chartier, Ezeh’s defence solicitor, stated:

“Ezeh is committed to taking full responsibility and accountability for her actions. She is deeply remorseful to anyone who has been negatively impacted.”

Ezeh has agreed to pay $1.4 million in restitution to government agencies and nearly $400,000 in unpaid taxes. A formal sentencing hearing is scheduled for May 13.

Culled from Businessday NG