Three indicted in alleged $20 million theft from former Ohio community college

Three people have been indicted in an alleged $20 million theft scheme involving Eastern Gateway Community College, a now-defunct Ohio school that closed amid financial problems.

Ohio Auditor Keith Faber announced Thursday that a Jefferson County grand jury indicted Michael Perik, Nicole Rowe Colclasure and Michael Geoghegan in connection with an alleged scheme to divert federal financial aid and state subsidies.

Perik and Colclasure each face 12 felony counts, including engaging in a pattern of corrupt activities, aggravated theft, theft in office, bribery and money laundering.

Geoghegan faces nine felony counts, including engaging in a pattern of corrupt activities, aggravated theft, theft in office, telecommunications fraud and bribery.

The indictments were filed Thursday in Jefferson County Common Pleas Court. Attorneys from the auditor’s Special Investigations Unit were appointed as special prosecutors.

“These public resources were supposed to help disadvantaged students in an area of the state where educational opportunities were scarce,” Faber said in a release. “Instead, it appears these individuals took advantage of their positions, and students were left out in the cold.”

According to the auditor’s office, Perik allegedly used four for-profit companies he owned, including the Student Resource Center, to divert money from the college through illegal incentive payments and other compensation.

Colclasure served as president and part owner of the Student Resource Center, while Geoghegan served at different times as Eastern Gateway’s chief financial officer and president.

Prosecutors allege the companies exercised improper control over college operations, including student enrollment, attendance verification, fees and access to financial aid.

The alleged scheme included disbursing financial aid for ineligible students and failing to verify whether students attended classes or had withdrawn. The indictment also alleges that Geoghegan knew about the scheme but continued approving payments.

The alleged crimes occurred between 2017 and March 2022, when Eastern Gateway’s enrollment increased from approximately 8,500 students to more than 60,000. Many students participated in the college’s Free College Benefit Program, which allowed union members, their relatives and friends to enroll without paying tuition directly.

The U.S. Department of Education previously found that Eastern Gateway improperly used Pell grants and other financial aid to cover costs for eligible and ineligible students. Federal officials identified more than $44.4 million in liabilities that should have been repaid.

The auditor’s office also reported in November 2025 that more than $17 million in college spending was questioned during one of its final years of operation, citing widespread financial mismanagement and inadequate recordkeeping.

The Special Investigations Unit began investigating Eastern Gateway after receiving information about questionable purchases by college officials. Investigators executed a search warrant at the school’s Steubenville campus in January 2024.

Eastern Gateway stopped enrolling students in 2024 and later closed its Steubenville and Youngstown campuses.