Eastern Gateway Community College was supposed to be a lifeline for a corner of eastern Ohio where college options were thin. On Thursday, state prosecutors said it was something else: the center of a scheme that took about $20 million in public money and helped bring the school down.
A Jefferson County grand jury has indicted three people, Ohio Auditor of State Keith Faber announced. The defendants are presumed innocent, and the charges are allegations until proven in court. cwcolumbus
Who is charged
The racketeering case names Michael Perik, Nicole Rowe Colclasure, and Michael Geoghegan. Their alleged roles differ: cwcolumbus
- Perik is accused of using four for-profit companies he owned, including one called the Student Resource Center, to divert money from the college.
- Colclasure was president and part owner of the Student Resource Center, among other roles in Perik’s companies.
- Geoghegan was the college’s chief financial officer and president.
Perik and Colclasure each face a dozen felony counts, including engaging in a pattern of corrupt activity, aggravated theft of $1.5 million or more, bribery, receiving stolen property, and money laundering. Geoghegan faces nine felony counts, including racketeering-type, theft, bribery, and fraud charges. cwcolumbus
What prosecutors say happened
The core allegation concerns who was allowed to be paid for recruiting students. Federal law bars incentive payments tied to enrollment and financial aid unless the work is done by an independent third party. The indictment alleges that the companies weren’t independent, and that they controlled attendance verification, enrollment, fees, and access to financial aid. cwcolumbuscwcolumbus
The result, prosecutors say, was a flow of money to insiders. The indictment alleges aid was disbursed for ineligible students and that nobody confirmed whether students attended or had withdrawn. It also alleges Geoghegan knew about the scheme and approved the disbursements anyway. cwcolumbuscwcolumbus
Faber put the harm in human terms. He said public resources meant to help disadvantaged students were taken, and that “students were left out in the cold.” cwcolumbus
How a small college got so big
The enrollment numbers explain why regulators took notice. Between 2017 and March 2022, when the alleged crimes took place, enrollment rose from about 8,500 students to more than 60,000. More than 90% of students took only online courses, and about 80% reportedly lived out of state. Many took part in a program that let union members and their relatives and friends enroll at no direct cost to them. Grand jury indicts 3 in alleged $20M theft from Eastern Gateway Community College +2
The federal side
The U.S. Department of Education had already found problems. Its final program review found the college improperly used Pell grants and other aid and identified more than $44.4 million in liabilities, though the review projected more than $259 million because of the closure and missing records. The review also found the school had handed core financial aid and operating duties to third-party servicers. cwcolumbuscwcolumbus
Federal officials appeared at the announcement. Faber spoke at the Ohio Statehouse alongside U.S. Under Secretary of Education Nicholas Kent. cwcolumbus
How the investigation unfolded
The Auditor’s Special Investigations Unit began after receiving information about questionable purchasing by college officials. In January 2024, multiple agencies executed a search warrant at the college, including the Jefferson County Sheriff’s Office, the Ohio State Highway Patrol’s computer crimes unit, and the U.S. Secret Service. An audit released in November 2025 flagged more than $17 million in questioned costs and what it called rampant financial mismanagement. Grand jury indicts 3 in alleged $20M theft from Eastern Gateway Community College +2
The college was founded in 1968 in Steubenville and closed for good in September 2025. cwcolumbus
A separate case you may remember
This is not the first criminal case tied to the college. In 2023, a grand jury indicted two former officials over alleged personal use of college credit cards. The Auditor said that case involved 205 transactions totaling more than $28,757. That case is distinct from this one. I haven’t confirmed its outcome. ohioauditorwkbn
What happens next
The defendants will be arraigned in Jefferson County Common Pleas Court, where the indictment was filed. Attorneys from the Auditor’s unit were appointed special prosecutors by Jefferson County Prosecutor Jane Hanlin. I couldn’t find responses from the defendants or their attorneys. cwcolumbus
Why it matters beyond Ohio
The case is a reminder of how federal student aid can be abused when the people paid to recruit students also control who gets aid. Any state with a rapidly expanding online college can learn from it. It’s also a cautionary story for the students and families who built plans around a school that no longer exists.
FAQ
Who was indicted?
Michael Perik, Nicole Rowe Colclasure, and Michael Geoghegan.
How much money is alleged to be involved?
About $20 million, according to the Auditor’s announcement.
Where was the case filed?
Jefferson County Common Pleas Court in Ohio.
Is Eastern Gateway Community College still open?
No. It closed in September 2025.
