GRAND RAPIDS, Mich. — The founder and former CEO of a West Michigan-based nonprofit is facing a lawsuit from the organization she started, as they accuse her of embezzling “hundreds of thousands of dollars” to herself and close associates.
Dr. Nkechy Ekere Ezeh started the Early Learning Neighborhood Collaborative (ELNC) in 2011.
The nonprofit focuses their work on assisting with the challenges of early-childhood education deficits in “vulnerable” neighborhoods.
She is now accused of embezzling approximately $656,350 from the organization she founded, allegedly distributing the money to herself, friends and family.
“ELNC has accomplished tremendous things in Grand Rapids and elsewhere, advocating on behalf of partner organizations rooted in historically underserved communities for many years,” a complaint filed last week in a Kent County court reads.
“Tragically, however, the continued operation of ELNC is uncertain due to the fraudulent conduct of its former CEO and director of Finance and Administration, both of whom were terminated over the summer following a lengthy internal investigation.”
Both Dr. Nkechy Ekere Ezeh and former Director of Finance Sharon Killebrew are named in the lawsuit.
As of Monday, the nonprofit’s website redirects to a landing page that contains just the group’s logo and a link to the filed lawsuit.
“Our hearts are broken. As a nonprofit, our staff has been dedicated to supporting early care and education programs for children in under-resourced neighborhoods here in West Michigan. We were devastated to learn our founder/former CEO and former Director of Finance embezzled funds and breached their fiduciary duties, putting our future in financial jeopardy,” Brian Lennon, attorney for ELNC, told FOX 17 Monday.
"The Board has a fiduciary duty to recover the funds that have been stolen. We filed this lawsuit so we can recoup these funds. We call on our founder/former CEO and former Director of Finance to do the right thing and return the money as soon as possible."
According to the lawsuit, the nonprofit launched an internal investigation in early 2023 after a whistleblower's complaint relating to Dr. Ezeh’s alleged conduct, specifically referencing her alleged “reckless spending.”
The lawsuit claims the investigation found that Dr. Ezeh had used “a web of interrelated organizations to funnel hundreds of thousands of dollars to herself, as well as to her family and friends — money that should have been used to support at-risk youth.”
The suit also claims that Killebrew, the former director of finance, paid herself nearly $1 million between June 2017 and April 2023.
While the suit only names Dr. Ezeh and Killebrew, it states that other employees were also fired in the wake of the internal investigation.
It alleges that others, who were not let go as part of the investigation, have since resigned their roles within the nonprofit.
“In short, Dr. Ezeh’s and Killebrew’s unlawful conduct has decimated ELNC,” the complaint reads.
As of the lawsuit’s filing, the ELNC says there are only three board members remaining, claiming “the other six board member [sic] have resigned.”
To put operations in perspective, the suit claims the nonprofit had a total income of about $17 million in 2017.
According to the suit, that money is intended to be distributed among partner organizations to “fund early-learning education centers to serve youth located in at-risk communities.”
At its core, the lawsuit alleges that Dr. Ezeh formed multiple other entities in an effort to illegitimately funnel money to herself that she was not owed.
Dr. Ezeh is alleged to have formed a company called PONA Consulting around the same time she started the ELNC, naming herself as the registered agent in its articles of incorporation filed with the state of Michigan.
The suit also claims that Dr. Ezeh formed a group called the Early Years Coalition in April 2022 — alleging that Killebrew was instructed by Dr. Ezeh to register the organization with the state’s licensing department.
The complaint outlines Dr. Ezeh’s alleged fraudulent activity like this: the ELNC would be awarded grant money from “various foundations, state and federal governments, individuals, and businesses.”
The ELNC would then allegedly distribute that money to a number of partner organizations, including the Early Years Coalition.
They claim that the Early Years Coalition would then pay “significant amounts of that money” to PONA Consulting via “fraudulent invoices,” allegedly diverting money directly to Dr. Ezeh.
The complaint lays out seven different allegedly fraudulent payments made by the Early Years Coalition to PONA Consulting, ranging from $5,000 all the way up to $30,000.
The suit claims that approximately $227,840 was transferred from the ELNC to the Early Years Coalition from May through August 2022.
It alleges that $110,000 of that money was sent to PONA Consulting. It claims the remaining $117,840 was sent to Dr. Ezeh’s friends and family — including her husband, her brother and another ELNC employee.
Eventually in August 2022, the suit claims Dr. Ezeh decided to form Global Open Learning and Development Preschools (GOLD) to replace the Early Years Coalition.
Allegedly operating as a partner organization to ELNC, GOLD was receiving money to operate two locations: the International Preschool of the Arts on Cesar E. Chavez Ave. SW and the Explore & Learn Academy on Sigsbee SE.
The suit accuses Dr. Ezeh of using GOLD to divert ELNC funds to herself, “money that should have been used to benefit at-risk youth at Caesar Chavez and Sigsbee.”
In November 2022, ELNC allegedly paid $128,000 to GOLD for the operation of the two schools. The suit claims that $68,500 of that money was improperly sent to PONA Consulting.
The suit lays out an allegedly fraudulent payment to her brother in March 2023, claiming Dr. Ezeh issued him a $45,000 cashier's check from GOLD’s account.
It includes a copy of the invoice allegedly filled out in regards to the payment, calling it “incredibly rudimentary.”
The area designated to describe the scope of work the invoice is covering reads, “Professional Development,” “Facilitation of New School year Retreat & Team Building for GOLD Staff,” and “Working with Black young boys (fall 2023).”
The suit follows up stating, “This payment had absolutely nothing to do with GOLD’s operation and was made without ELNC Board’s knowledge or approval.”
The suit is accusing Dr. Ezeh with embezzlement, fraud, breach of fiduciary duty, and civil conspiracy.
Killebrew is accused of embezzlement, fraud and civil conspiracy.
This situation with Dr. Ezeh is not expected to impact the Community Hub project that is ongoing in the Boston Square neighborhood.
The ELNC was set to be an anchor tenant within the planned 45,000-square-foot community facility.
"Although sad to hear, this news doesn't prohibit the project from moving forward," a spokesperson for the project told FOX 17 Monday.
The spokesperson said that the Community Hub project will likely seek out another partner to address the childhood education and development needs.
The $25 million project was expected to open in late 2024 or early 2025 at 1534 Kalamazoo Ave.
FOX 17 has attempted to reach Dr. Ezeh for comment Monday but has so far been unable to make contact.
