The indictment names Perik and two others, Nicole Rowe Colclasure and Michael Geoghegan. Ohio Auditor of State Keith Faber’s office alleges they improperly routed Pell grants, other federal student aid and state subsidies through fraudulent reimbursements and illegal incentive payments. Officials say the conduct also contributed to the college’s closure.

Perik faces 12 counts, including engaging in a pattern of corrupt activities, aggravated theft of at least $1.5 million, theft in office, telecommunications fraud, bribery, money laundering and having an unlawful interest in a public contract.

Investigators allege Perik used four for-profit companies he owned to obtain payments from the college. The auditor’s office says the companies were not independent contractors and had influence over enrollment, attendance verification, fees and students’ access to financial aid. Officials further allege that aid was disbursed for ineligible students and that the college failed to verify whether some students attended or withdrew.

The alleged activity occurred from 2017 through 2022. During that period, investigators say, Eastern Gateway’s enrollment rose from 8,500 to 60,000. More than 90% of students were enrolled in online courses, and about 80% reportedly lived outside Ohio. Many out-of-state students used a program offering free college benefits to union members and their relatives and friends.

The U.S. Department of Education separately found that the college improperly used Pell grants and other aid to cover costs for eligible and ineligible students, according to Ohio officials.

“These public resources were supposed to help disadvantaged students in an area of the state where educational opportunities were scarce,” Faber said in a statement. “Instead, it appears these individuals took advantage of their positions, and students were left out in the cold.”

Perik’s attorney, Brad Barbin, said his client committed no crime and followed established procedures, which he said had been reviewed by state and federal agencies and courts. Barbin also pointed to the Justice Department’s 2024 agreement to dismiss a federal court action involving the college, saying the department then concluded that continuing to pursue or monitor the case was not in the public interest. He characterized the indictment as political retribution.

The charges are allegations, and the defendants are presumed innocent unless proven guilty. The announcement did not include a response from Beretta-Perik.