Three Individuals Indicted for Alleged $20 Million Financial Aid Theft Leading to College Closure
Three individuals connected to Eastern Gateway Community College in eastern Ohio have been indicted for allegedly stealing approximately $20 million in student financial aid. The indictment names former college president and CFO Michael Geoghegan, along with Michael Perik and Nicole Rowe Colclasure, CEO and president respectively of the Student Resource Center, a private contractor managing financial aid and online enrollment for the college. Ohio Auditor Keith Faber stated that the alleged scheme involved falsely claiming scholarships for a free tuition online program, which was actually funded by Pell Grants for needy students and massive tuition write-offs. To sustain this operation, the Student Resource Center is accused of bribing public officials at Eastern Gateway, including top financial aid and admissions officers, and tampering with college records to conceal these arrangements from regulators and auditors. This alleged financial misconduct is believed to have directly led to the closure of Easte...