Great Lakes Wire

Michael Bacigalupo, a former executive director of two nonprofit organizations and a city development official, has pleaded guilty to defrauding the nonprofits of more than $750,000. The announcement was made by United States Attorney Jerome F. Gorgon Jr., alongside Reuben C. Coleman, Acting Special Agent in Charge of the FBI's Michigan Division, and Caleb Rowell, Public Safety Director for Bay City.

Bacigalupo, 63, from Essexville, Michigan, admitted guilt to one count of wire fraud. According to information presented during his plea hearing, between June 2020 and November 2023 he led both the Bay City State Theatre and the Bay City Historical Society as executive director and also served as the former Director of the Bay City Downtown Development Authority. Prosecutors said he used these positions to divert over $750,000 meant for essential nonprofit purposes toward renovations at a public bandshell in Bay City.

The misuse of funds caused significant consequences for both organizations. The Bay City State Theatre defaulted on a private loan secured with its property and was forced into bankruptcy. The Bay City Historical Society could not complete major renovations to its building and museum due to the loss of funds. In an attempt to cover up the diversion, Bacigalupo fraudulently applied for a $900,000 federal grant; however, authorities discovered his actions before any federal money was distributed. Investigators found that Bacigalupo provided false statements supported by fabricated board minutes, third-party invoices, and accounting records.

“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.

The investigation was led by the Bay City Department of Public Safety together with the Federal Bureau of Investigation. Assistant United States Attorneys T. Patrick Martin and William Orr are prosecuting the case.