Former Non-Profit Executive Director and City Development Official Pleads Guilty to Scheme to Divert Funds from Non-Profit Missions

BAY CITY - Michael Bacigalupo, the former executive director of two nonprofit entities and a public figure pleaded guilty today to defrauding the non-profits of over $750,000, United States Attorney Jerome F. Gorgon Jr. announced.

Gorgon is joined in this announcement by Reuben C. Coleman, Acting Special Agent in Charge of the Federal Bureau of Investigation, Michigan Division, and Caleb Rowell, Public Safety Director, Bay City Department of Public Safety.

Michael Bacigalupo, 63, of Essexville, Michigan, pleaded guilty to one count of Wire Fraud.

According to facts made public at the plea hearing, from approximately June 2020 through November 2023, Bacigalupo was the Executive Director of both the nonprofit Bay City State Theatre and the nonprofit Bay City Historical Society, as well as the former Director of the Bay City Downtown Development Authority. He used his leadership positions to fraudulently obtain and divert over $750,000 of nonprofit funding intended for mission essential requirements to instead pay for renovations to a public bandshell in Bay City. As a result of Bacigalupo's fraudulent conduct, the Bay City State Theatre defaulted on a private loan Bacigalupo had secured using the theatre itself, requiring the State Theater to declare bankruptcy. Similarly, Bacigalupo's misappropriation of the Bay City Historical Society's funds prevented it from completing substantial renovations to its building and museum. To replenish the diverted funds, Bacigalupo sought and secured a $900,000 federal grant under fraudulent pretenses. His fraudulent conduct, however, was uncovered before the federal monies were disbursed. To perpetrate the fraud, Bacigalupo made numerous false statements to the affected organizations, and substantiated his lies with fictitious board minutes, third-party invoices, and Quickbook entries.

"Working or volunteering for a non-profit entity is a wonderful way to help strengthen our communities. But non-profits are not a personal piggy bank whose donated funds can be used for personal pet projects. Doing so is not only selfish and wrong, but also a crime that carries significant consequences," said United States Attorney Jerome F. Gorgon Jr.

"The defendant's fraud scheme deprived well-meaning nonprofit organizations of the funds necessary to carry out their critical missions and forced one entity into bankruptcy," said Acting Special Agent in Charge Reuben C. Coleman of the FBI in Michigan. "The FBI is poised to investigate fraud cases with financial intricacies like those documented in this case. We commend the Bay City Department of Public Safety, in particular, for taking strong action against those who seek to defraud nonprofit entities seeking to enrich our communities."

"I am thankful for the diligent work of Detective Ben Meyer and the agents from the FBI. They conducted a lengthy and very thorough investigation which will allow the community to move forward and justice to be served. I would also like to thank the United States Attorney's Office of the Eastern District of Michigan for their ability to resolve this case in a fair manner for all parties involved," said Caleb Rowell, Public Safety Director, Bay City Department of Public Safety.

This investigation was conducted by the Bay City Department of Public Safety and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys T. Patrick Martin and William Orr.