A former Bay City civic leader, Michael Bacigalupo, was sentenced on April 24 to two years in federal prison for defrauding two local non-profit organizations of more than $750,000 and causing one to declare bankruptcy, according to an announcement by United States Attorney Jerome F. Gorgon Jr.
The sentencing underscores the impact of financial misconduct within community organizations and highlights the risks posed when trusted leaders exploit their positions. Bacigalupo, 64, of Essexville, Michigan, was also ordered by U.S. District Judge David M. Lawson to pay restitution totaling $196,641.17 to the Bay County Historical Society and $151,000 to the Bay City State Theatre or its successor. Following his incarceration, he will serve a two-year term of supervised release.
Court records show that between June 2020 and November 2023, Bacigalupo held leadership roles at several organizations including Director of the Bay City Downtown Development Authority, Chief Operating Officer of the Bay City State Theatre (BCST), and Executive Director of the Bay County Historical Society (BCHS). During this period, he diverted funds from both BCST and BCHS toward renovations at Wenona Park Bandshell without authorization from either organization’s board.
In one instance described in court documents, Bacigalupo secured an $800,000 loan from the Bay County Growth Alliance using BCST property as collateral after falsely claiming board approval and providing fabricated minutes as evidence. He then transferred these funds into BCST accounts before redirecting them toward the Bandshell project without informing board members. After partial repayments totaling $277,000 were made on this loan—leaving a balance exceeding half a million dollars—BCST defaulted on payments it had not authorized and ultimately filed for bankruptcy.
Additionally, between November 2020 and January 2022 Bacigalupo diverted over $230,000 from BCHS by manipulating accounting records and fabricating invoices related to contractors working on projects other than those intended by BCHS leadership. The misappropriation left BCHS unable to complete planned museum renovations or retain staff.
Bacigalupo also misrepresented information while seeking a federal grant through Michigan Economic Development Corporation (MEDC), securing initial approval for $900,000 but submitting false documentation that led MEDC officials to withhold disbursement after finding his paperwork insufficient.
“Fraud in the garb of civic leadership is still fraud. And this man’s fraud hurt cherished Bay City organizations,” Gorgon said in announcing the sentence.
The case was investigated by the Bay City Department of Public Safety and prosecuted by Assistant United States Attorneys William Thomas Orr and Ryan A. Particka.
