Jerome F. Gorgon, Jr., U.S. Attorney’s Office for the Eastern District of Michigan | Department of Justice
A former Bay City civic leader, Michael Bacigalupo, was sentenced on Apr. 24 to two years in federal prison for a scheme that defrauded two local non-profit organizations of more than $750,000 and led one of them into bankruptcy, according to United States Attorney Jerome F. Gorgon Jr.
The case highlights the impact of financial misconduct on community organizations that rely on trust and integrity from their leaders. The fraudulent activities not only caused significant financial losses but also disrupted the operations and missions of both affected non-profits.
Bacigalupo, 64, from Essexville, Michigan, was sentenced by U.S. District Judge David M. Lawson and ordered to pay restitution totaling $347,641.17—$196,641.17 to the Bay County Historical Society (BCHS) and $151,000 to the Bay City State Theatre (BCST) or its successor—as well as serve a two-year term of supervised release after his incarceration.
Court records show that between June 2020 and November 2023 Bacigalupo held leadership roles at three organizations: Director of the Bay City Downtown Development Authority, Chief Operating Officer at BCST, and Executive Director at BCHS. He used these positions to divert funds without board approval toward renovating the Wenona Park Bandshell.
In one instance Bacigalupo obtained an $800,000 loan from the Bay County Growth Alliance by falsely claiming BCST board approval with fabricated minutes; he then diverted those funds for unauthorized purposes. After partial repayments ceased with a remaining balance over $500,000 unpaid by BCST—which had not authorized the debt—the theatre defaulted and filed for bankruptcy.
Additionally between November 2020 and January 2022 Bacigalupo misappropriated more than $230,000 from BCHS through manipulated accounting records and fake contractor invoices; this left BCHS unable to complete museum renovations or retain staff members. He also fraudulently sought a federal grant using falsified documents but failed when required documentation could not be provided.
"Fraud in the garb of civic leadership is still fraud. And this man’s fraud hurt cherished Bay City organizations," Gorgon said.
The investigation was conducted by the Bay City Department of Public Safety while prosecution was handled by Assistant United States Attorneys William Thomas Orr and Ryan A. Particka.
