Rhode Island Democratic Party Chair Resigns After Husband Indicted in $20 Million Education Grant Scheme

Rhode Island Democratic Party Chair Liz Beretta-Perik resigned Tuesday after her husband, Michael Perik of Jamestown, was indicted by an Ohio grand jury on a dozen felony counts tied to an alleged scheme that diverted roughly $20 million in Pell Grants and other federal and state education aid from the now-defunct Eastern Gateway Community College.

Beretta-Perik, who is not named in the indictment and faces no charges, sent a one-sentence email to Democratic State Committee members and party secretary Arthur Corvese at 12:22 p.m. on October 20. It read: “I am resigning effective today as Chair of the Rhode Island Democratic Party. Thank you.” Party executive director Katherine Riordan confirmed the resignation. Beretta-Perik had previously stated that the Ohio matter “had nothing to do” with her or her role as party leader.

Ohio Auditor of State Keith Faber announced the indictments on October 8 following a Special Investigations Unit probe. Perik and his business partner, Nicole Rowe Colclasure, each face 12 felony counts, including engaging in a pattern of corrupt activities, aggravated theft of $1.5 million or more, theft in office, telecommunications fraud, bribery, having an unlawful interest in a public contract, receiving stolen property, and money laundering. Former Eastern Gateway president and chief financial officer Michael Geoghegan faces nine felony counts. The 24-count indictment was filed in Jefferson County Common Pleas Court.

Prosecutors allege that between 2017 and March 2022, Perik used four for-profit entities he controlled—including the Student Resource Center, where he served as CEO—to divert Pell Grants, other federal financial aid, and state subsidies through fraudulent reimbursements and illegal incentive payments. Federal law generally prohibits incentive compensation tied to enrollment or financial aid activities unless conducted by an independent third party. The indictment claims the companies exercised improper control over attendance verification, enrollment, fees, and access to aid rather than operating independently.

Enrollment at the Steubenville-based college rose from about 8,500 students to more than 60,000 during the period, with more than 90 percent enrolled only in online courses and roughly 80 percent living outside Ohio. Many participated in a “Free College Benefit Program” for union members, their families, and friends. Investigators say the program was presented as union-funded while actually relying on federal aid intended for low-income students, including payments for ineligible individuals. Faber stated that the public resources “were supposed to help disadvantaged students in an area of the state where educational opportunities were scarce. 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 joined Faber at the Statehouse announcement and said the Trump administration is addressing fraud through a whole-of-government approach. The U.S. Department of Education’s final program review identified more than $44.4 million in liabilities that should have been repaid, with projected liabilities exceeding $259 million amid the college’s closure and missing documentation. A November 2025 state audit questioned more than $17 million in costs. Eastern Gateway formally dissolved after ceasing instruction; the Higher Learning Commission had placed it on probation in 2021. Officials said the alleged scheme contributed to the college’s collapse.

Perik’s attorney, Brad Barbin, denied wrongdoing and called the case “purely political payback” from a change in federal administration. He said Perik followed protocols and received sign-offs from agency lawyers, noting prior reviews by state and federal regulators and that the Department of Justice dropped a related lawsuit in 2024. Perik and the co-defendants have pleaded not guilty.

The resignation came roughly two weeks before the November 3 election, with early voting underway. Democratic gubernatorial nominee Helena Buonanno Foulkes called for Beretta-Perik to step aside, citing the seriousness of the allegations and the proximity of the election. Republican gubernatorial nominee Aaron Guckian and state GOP Chairman Allyn Meyers also urged transparency. Meyers described the allegations, if proven, as a “staggering betrayal of public trust.”

State campaign finance records show Michael Perik has donated more than $105,000 to political candidates over the years, mostly Democrats, plus $24,000 for party-building to the Rhode Island Democratic State Committee. Recipients have included Gov. Dan McKee, Attorney General Peter Neronha, Congressman Seth Magaziner, and Foulkes, who received $2,000 in 2021–2022. Foulkes’ campaign said it is donating those contributions to a scholarship at the Community College of Rhode Island. The Periks have long been active Democratic donors and fundraisers in Rhode Island; their Jamestown home has hosted events.

Beretta-Perik, elected unanimously in November 2023 as the first woman to chair the Rhode Island Democratic Party, previously served as party treasurer and a Democratic National Committee member and was a 2020 presidential elector. House Speaker Christopher Blazejewski and Senate President Valarie Lawson thanked her for her service. On Wednesday, Blazejewski announced that State Representative Jenni Furtado of East Providence would replace her, with formal ratification expected soon.