Jerome F. Gorgon, Jr., U.S. Attorney’s Office for the Eastern District of Michigan | Department of Justice
Michael Bacigalupo, a former executive director of two nonprofit organizations and a public official, pleaded guilty to wire fraud for diverting more than $750,000 from the nonprofits he led. The announcement was made by United States Attorney Jerome F. Gorgon Jr., along with officials from the FBI and Bay City Department of Public Safety.
Bacigalupo, 63, served as Executive Director for both the Bay City State Theatre and the Bay City Historical Society between June 2020 and November 2023. He also previously directed the Bay City Downtown Development Authority. According to information revealed during his plea hearing, Bacigalupo used his positions to redirect funds meant for essential nonprofit missions toward renovations of a public bandshell in Bay City.
As a result of these actions, the Bay City State Theatre defaulted on a private loan that Bacigalupo had secured using the theater as collateral, leading to its bankruptcy. The diversion of funds from the Bay City Historical Society prevented needed renovations to its building and museum. To replace some of the lost money, Bacigalupo obtained a $900,000 federal grant through fraudulent means; however, authorities discovered his actions before any federal funds were released. The fraud involved false statements supported by fictitious board minutes, third-party invoices, and altered financial records.
United States Attorney Jerome F. Gorgon Jr. stated: “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.”
Reuben C. Coleman, Acting Special Agent in Charge of the FBI in Michigan added: “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. 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.”
Caleb Rowell, Public Safety Director for Bay City Department of Public Safety said: “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.”
The investigation was led by local law enforcement working with federal authorities.
