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Eastern Gateway Community College Investigation

Explore the Auditor of State’s investigation into Eastern Gateway Community College, including key events, audit findings, press releases and related public records.

Indictment Announcement — Auditor Keith Faber announces criminal indictments. For additional playback options, watch on the Ohio Channel (opens in a new tab)

Investigation examines wrongdoing and financial mismanagement at EGCC

The Auditor of State’s Special Investigations Unit (SIU) has conducted an investigation into potential wrongdoing involving Eastern Gateway Community College and its former officials. Additional information about the investigation and its findings will be available here as it is released.

Eastern Gateway Community College investigation timeline PDF cover (PDF, opens in a new tab)
Timeline Summary 2028–2026
Eastern Gateway Community College investigation resources PDF cover (PDF, opens in a new tab)
Resources for Former EGCC Students
Eastern Gateway Community College investigation resources PDF cover (PDF, opens in a new tab)
Latest Press Release October 8, 2026
Eastern Gateway Community College investigation resources PDF cover (PDF, opens in a new tab)
Indictment October 7, 2026

Press Release

Three individuals were indicted in connection with an alleged scheme to divert approximately $20 million in federal financial aid and state subsidies from Eastern Gateway Community College. The indictments follow a Special Investigations Unit investigation and allege a pattern of corrupt activity involving fraudulent reimbursements and illegal incentive payments.

Read the full press release Page (opens in a new tab)

Indictment

The 24-count indictment details allegations against Michael Perik, Nicole Rowe Colclasure and Michael Geoghegan involving the alleged diversion of more than $20 million. Charges include corrupt activity, aggravated theft, theft in office, telecommunications fraud, bribery, tampering with records, receiving stolen property and money laundering.

View the full indictment PDF (PDF, opens in a new tab)

How Did We Get Here?

Eastern Gateway Community College's history can be viewed in five distinct phases, from its beginnings as a regional community college through its closure and the Auditor of State's continuing investigation.

The Auditor of State’s Single Audit of FY2023 examined the college’s financial operations and identified significant findings.

The audit identified more than $17 million in questioned costs, representing the entirety of the federal student aid programs reviewed. It also identified problems involving financial records, internal controls, student enrollment and attendance documentation, financial aid and borrowing. The Auditor’s Special Investigations Unit has continued a separate investigation.

On August 8, 2022, the U.S. Department of Education placed EGCC on Heightened Cash Monitoring 2 status. On March 11, 2024, the Chancellor of Higher Education declared EGCC under Fiscal Watch*.

By early 2024, the situation had become sufficiently serious that the college paused enrollment. Ohio advanced more than $6 million in state funding, but the college’s board ultimately determined that it could not continue operating.

The final instructional period ended in July, commencement occurred in August, and the college formally dissolved October 31, 2024, with wind down and by operation of law occurring on September 24, 2025.

*Learn more about fiscal distress and what each designation means on the Fiscal Distress page (opens in a new tab)

When the free-college program was eventually discontinued, EGCC lost a substantial portion of its enrollment. The Auditor’s later audit documents a 48.9% decline in Fall 2023 enrollment compared with Fall 2022.

The enrollment decline occurred while the college was dealing with accreditation issues, financial problems and questions concerning its management of federal financial aid.

The college dramatically changed its business model by aggressively pursuing online students nationwide. The free-college program for union members and their families produced enormous enrollment growth.

That growth became central to the college’s later problems. The Higher Learning Commission placed EGCC on probation in 2021, and federal authorities subsequently intervened over the college’s administration of federal financial aid and the free-college program.

EGCC’s original mission was straightforward: provide affordable technical and community-college education to residents of eastern Ohio.

Over several decades it expanded from a technical institute into a broader community college serving Jefferson, Columbiana, Mahoning and Trumbull counties.

Audit Reports & Related Documents

Auditor of State reports and related documents provide additional information about Eastern Gateway Community College’s financial activity and audit history.

Looking for additional audit reports?

Search all audit reports (opens in a new tab)

Press Releases

Read press releases related to the Eastern Gateway Community College investigation, including indictments, audit findings and other major developments.

Three People Indicted in Alleged Theft of $20 Million from Defunct Eastern Gateway Community College

The Jefferson County Grand Jury has handed down indictments against three individuals in the alleged theft of about $20 million from the now-defunct Eastern Gateway Community College (EGCC), Auditor of State Keith Faber announced.

Statement on Search Warrant Executed at Eastern Gateway Community College in Steubenville

The Auditor of State’s Special Investigations Unit and partner law-enforcement agencies executed a search warrant related to ongoing investigations concerning Eastern Gateway Community College.

Former Eastern Gateway Community College President, Vice President Indicted for Theft over Misuse of Credit Cards

A Jefferson County Grand Jury returned indictments against two former Eastern Gateway Community College officials following allegations that they used college credit cards for purchases unrelated to school operations.

Investigation Timeline

  • October 7

    Indictments.

    2026
  • September

    EGCC closes.

    November

    Auditor releases major audit findings identifying $17+ million in questioned costs and 44 findings, including serious deficiencies in financial controls, recordkeeping, enrollment tracking and federal student-aid oversight.

    2025
  • January

    SIU and multiple law-enforcement agencies execute a search warrant at EGCC.

    January

    Auditor asks the public to provide information about potential fraud, waste and abuse.

    July–November

    College ceases instruction and loses accreditation.

    2024
  • June

    Auditor publicly documents an ongoing investigation.

    August

    Former EGCC President and Vice President/Chief of Staff are indicted following Auditor findings.

    2023
  • Auditor continues required financial-audit work as concerns develop.

    2021–23
  • Routine Auditor audit work uncovers questionable EGCC credit-card expenditures.

    2018–19

Resources for Former EGCC Students

Former Eastern Gateway Community College students may find the following U.S. Department of Education resources helpful for reporting concerns, filing complaints or seeking assistance with federal student aid.

U.S. Department of Education OIG

Report fraud, waste, abuse or mismanagement involving federal student aid or U.S. Department of Education-funded programs, including student aid fraud, theft, Pell Grant abuse and loan fraud.

Office of Inspector General

OIG Hotline and Online Reporting (opens in a new tab)

ED OIG Hotline
400 Maryland Ave SW
Washington, DC 20202-1500

EGCC Closure Information

Find answers to common questions following the college’s closure, including information about transcripts and diplomas, student records, transfer options, accreditation, public records and other resources for former EGCC students.

Eastern Gateway Community College (EGCC)

Frequently Asked Questions (FAQ) (opens in a new tab)

Borrower Defense Hotline

For students seeking federal student loan discharge due to institutional misconduct or misrepresentation, including issues involving a closed school.

Federal Student Aid

855-279-6207