Michael Perik, the husband of Rhode Island Democratic Party Chair Liz Beretta-Perik, has been indicted in the alleged theft of $20 million from the now-closed Eastern Gateway Community College, according to Ohio state officials.

The Ohio Auditor of State’s Office announced that Perik and two other people are accused of participating in a coordinated criminal scheme. Officials allege the operation diverted Pell grants, other federal aid, and state subsidies through fraudulent reimbursements and illegal incentive payments.

The alleged crimes occurred from 2017 through 2022, according to officials. The scheme also contributed to the closure of Eastern Gateway Community College, investigators allege.

Perik faces a dozen charges, including engaging in a pattern of corrupt activities and aggravated theft of $1.5 million or more. He is also charged with theft in office, telecommunications fraud, bribery, having an unlawful interest in a public contract, receiving stolen property, and money laundering.

BREAKING: Michael Perik, the husband of Rhode Island Democratic Party chair Liz Beretta-Perik, was just indicted on fraud charges for allegedly stealing $20 million of taxpayer money meant for a community college https://t.co/YHuLgBroQl

— Libs of TikTok (@libsoftiktok) October 20, 2026

The Auditor of State’s Special Investigations Unit began investigating after receiving information about questionable purchases by college officials. The indictment also charges Nicole Rowe Colclasure and Michael Geoghegan.

According to the indictment, Perik used four separate for-profit entities that he owned to divert money from the school. He allegedly received illegal incentive payments and other compensation through the arrangement.

The companies did not operate as independent third-party contractors, according to the Ohio Auditor of State. Officials said the businesses exercised significant influence over the college, including control involving attendance verification, enrollment, fees, and access to financial aid.

“The illegal activities included disbursing aid for ineligible students and failing to confirm whether students actually attended or had withdrawn from classes. As a result, millions of dollars in financial aid were improperly paid to entities owned and controlled by Perik and Colclasure,” the auditor’s office said in a press release.

During the period covered by the allegations, investigators said enrollment at Eastern Gateway Community College surged from 8,500 students to 60,000. More than 90% of those 60,000 students were enrolled in online courses, while about 80% reportedly lived outside Ohio.

Many of the students living outside the state participated in the Free College Benefit Program. The program allowed union members, their family members, and friends to enroll in classes at no direct cost.

The U.S. Department of Education said its investigation determined that the college improperly used Pell grants and other financial aid. According to the department, the money was used to cover costs for both eligible and ineligible students.

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

U.S. Under Secretary of Education Nicholas Kent said the federal student aid programs involved are intended to help students obtain postsecondary education. He also said the department was standing with Faber and his team in seeking accountability and protecting resources relied upon by millions of students and families.

State campaign finance records show that Perik has donated nearly $50,000 to the Rhode Island Democratic state committee during the past 25 years. He also donated more than $75,000 to political candidates, adding a distinctly political wrinkle to an already sprawling indictment.

Recipients of Perik’s donations included Gov. Dan McKee, Helena Foulkes, Attorney General Peter Neronha, and Congressman Seth Magaziner. His only donation during the last two years went to now former House Speaker Joseph Shekarchi.

Perik’s attorney, Brad Barbin, rejected the allegations and defended his client’s conduct. “There was no crime or lack of transparency,” Barbin said in a statement.

Barbin said Perik followed required protocols and received approvals from agency lawyers. He argued that the interpretation of the program’s legality changed when administrative reviewers changed.

“There is no statute of limitations for political retribution, and this is purely political payback. The weaponization of untrained 'Special Prosecutors' to inflict political paybacks happens every day in our Country. Most of these prosecutions have very little to do with the pursuit of Justice,” Barbin said.

Democratic gubernatorial nominee Foulkes called the allegations serious and concerning while noting that everyone is entitled to due process. With a pivotal election approaching, she thanked Liz Beretta-Perik for her service but said the state party chair should step aside.

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