STEUBENVILLE, Ohio — Three individuals connected to Eastern Gateway Community College have been indicted following an investigation into an alleged financial fraud scheme involving nearly $20 million in public funds.
Ohio Auditor of State Keith Faber announced the indictments on Thursday, October 8, 2026, following an investigation into financial practices at the now-closed community college.
A Jefferson County special grand jury indicted Michael Perik, Nicole Rowe Colclasure and Michael Geoghegan on multiple felony charges related to allegations that public education funding was improperly obtained and diverted through a network of businesses associated with the college.
According to investigators, the alleged activity occurred between 2017 and March 2022, during a period when Eastern Gateway experienced significant enrollment growth through its online education programs.
Allegations Involving Financial Aid and Public Funds
Investigators allege that the defendants participated in a scheme involving federal financial aid, including Pell Grants, and state education funding.
The investigation focused on financial arrangements involving Eastern Gateway, its Student Resource Center and several for-profit businesses.
Authorities allege that these arrangements allowed millions of dollars intended to support students and educational operations to be improperly redirected.
The case involves allegations of racketeering, aggravated theft, theft in office, telecommunications fraud, bribery and money laundering, among other offenses.
Perik and Colclasure each face 12 felony counts, while Geoghegan faces nine. Geoghegan previously served in leadership roles at Eastern Gateway, including president and chief financial officer.
College Experienced Rapid Enrollment Growth
Eastern Gateway Community College, which operated campuses in Steubenville and Youngstown, saw enrollment increase dramatically during the period examined by investigators.
The college’s enrollment reportedly grew from approximately 8,500 students to more than 60,000 as its online programs expanded.
That growth eventually drew increased scrutiny from state and federal officials over the college’s financial practices, student aid administration and compliance with education funding requirements.
Separate audits and federal reviews identified substantial financial concerns, including more than $17 million in questioned costs and federal liabilities exceeding $44 million.
Those figures are separate from the approximately $20 million involved in the newly announced criminal allegations.
Eastern Gateway’s Closure
Eastern Gateway stopped offering instruction in 2024 following years of financial and regulatory difficulties.
The college subsequently entered a closure process, bringing an end to an institution that had served students throughout eastern Ohio and beyond.
The latest indictments represent another development in the investigation into the college’s operations and the handling of taxpayer-supported education funding.
Investigation Continues
The indictments were returned by a special grand jury in Jefferson County as part of the Ohio Auditor of State’s investigation.
An indictment is a formal criminal accusation and does not establish guilt. All three defendants are presumed innocent unless proven guilty in court.
The case will proceed through the judicial system as authorities seek to determine accountability for the alleged misuse of public funds.
