Former ELNC Director Pleads Guilty to Embezzlement

News Summary

Sharon Killebrew, ex-director of finance for the Early Learning Neighborhood Collaborative, pled guilty to federal charges for embezzling $1.17 million. Her actions included creating fake invoices and evading taxes, significantly destabilizing the nonprofit aimed at assisting vulnerable children. Killebrew faces a possible five-year prison sentence and is ordered to repay substantial restitution. The case raises concerns about governance in nonprofit organizations and highlights the fallout from her misconduct on the community.

Grand Rapids – Sharon Killebrew, the former director of finance and administration for the Early Learning Neighborhood Collaborative (ELNC), has agreed to plead guilty to federal charges related to the embezzlement of $1.17 million from the now-defunct nonprofit organization. The plea entails charges of conspiracy and tax evasion, marking a significant development in a case that has drawn considerable attention due to the impact on the charitable organization dedicated to assisting vulnerable children.

The ELNC, launched in 2013, aimed to prepare at-risk preschool students in Grand Rapids for kindergarten. However, the organization faced financial turmoil leading to its closure, with allegations of misconduct at its helm. The allegations against Killebrew and former CEO Nkechy Ekere Ezeh came to light when the ELNC filed a civil lawsuit in September 2023, alleging embezzlement and fraud that destabilized the nonprofit.

According to recent court documents, Killebrew’s misconduct spanned from 2016 to 2023. During this time, she reportedly created fake invoices and misappropriated funds which were distributed not only to herself but also to an unnamed co-conspirator. This orchestrated scheme involved Killebrew failing to complete her tax filings for eight consecutive years, prompting the tax evasion charge.

Under her plea agreement, Killebrew faces a maximum sentence of five years in prison for each of the federal charges, in addition to three years of supervised release. Furthermore, she is liable for restitution payments amounting to $1,170,935 for the conspiracy charge and $292,471 for tax evasion. There remains a possibility for a reduced sentence should she fully cooperate with investigators regarding the case.

While Killebrew has admitted guilt, she previously maintained her innocence, expressing devastation amid the allegations. In a notable confrontation in 2023, she claimed, “I’m just devastated. My whole life is devastated. I didn’t steal anything.” Despite her claims, the evidence presented by federal authorities led to definitive charges.

Nkechy Ezeh, the former CEO, has escaped criminal charges thus far but was named in the civil lawsuit for allegedly funneling large amounts of funds to herself and her family. The ongoing legal situations surrounding both Killebrew and Ezeh raise serious concerns about governance and oversight within nonprofit organizations.

The fallout from this case has prompted discussions about financial accountability within the nonprofit sector, especially for organizations that serve critical community functions such as early childhood education. The closure of the ELNC not only affects the staff and management but also has significant repercussions for the families it served, particularly those in vulnerable situations seeking educational support for their young children.

In summary, the plea agreement by Sharon Killebrew highlights a serious breach of trust within a nonprofit that once aimed to uplift the community. The continuing investigations and outcomes from the civil suit against other implicated parties will likely influence future regulations and oversight measures designed to protect the interests of beneficiaries and maintain the integrity of nonprofit organizations.

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Additional Resources

• MLive: Ex-bookkeeper at Early Childhood Learning Group to plead in $1 million conspiracy
• Fox17: Local Shriners Chapter embezzled $1.4 million by treasurer
• Grand Haven Tribune: Woman admits to embezzling $100k from GH manufacturer
• WoodTV: Guardian whose embezzlement snowballed gets prison time
• Wikipedia: Nonprofit