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Former Eastern Gateway associates face charges in alleged funds scheme

Three people formerly associated with Eastern Gateway Community College have been indicted in Jefferson County on multiple charges tied to an alleged financial operation. Ohio’s auditor says the indictment alleges about $20 million in public and federal funds were siphoned off; a federal review estimated that more than $250 million in Pell Grant funds were drawn down in the alleged scheme.

Former Eastern Gateway associates face charges in alleged funds scheme
Three former associates of Eastern Gateway Community College have been indicted on charges including theft, records tampering, telecommunications fraud, money laundering and bribery, according to Jefferson County Common Pleas Court records. The indictments accuse the three of taking millions of dollars from the Youngstown-area college. The allegations have not been proven in court. Ohio Auditor Keith Faber described the alleged operation as involving roughly $20 million in public and federal funds. He also cited a U.S. Department of Education review that estimated more than $250 million in federal Pell Grant funds had been drawn down in connection with the alleged scheme. Those figures describe different measures; the information released about the indictments does not establish that the full amount of grants drawn down was stolen. Eastern Gateway closed permanently in 2025 after financial problems. The investigation into the college’s closure remains ongoing, leaving unresolved questions about the handling of funds at an institution that served students in the region. An indictment is a formal accusation, not a finding of guilt. The available information does not identify the defendants or provide details about the next court dates.

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