Michael Bacigalupo, a former executive director of two nonprofit organizations and a city development official, pleaded guilty to wire fraud after admitting to defrauding the nonprofits of more than $750,000. The announcement was made by United States Attorney Jerome F. Gorgon Jr., who was joined by Reuben C. Coleman, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI) Michigan Division, and Caleb Rowell, Public Safety Director for Bay City.
Court records indicate that between June 2020 and November 2023, Bacigalupo served as Executive Director for both the Bay City State Theatre and the Bay City Historical Society. He also previously held the position of Director at the Bay City Downtown Development Authority. During this period, Bacigalupo used his leadership roles to divert funds meant for nonprofit operations toward renovations on a public bandshell in Bay City.
The diversion of funds had significant consequences. The Bay City State Theatre defaulted on a private loan that Bacigalupo had secured using the theatre as collateral, leading to bankruptcy proceedings for the theater. Similarly, his actions prevented the Bay City Historical Society from completing planned renovations to its building and museum.
Bacigalupo attempted to cover up these activities by submitting false statements supported with fictitious board minutes, third-party invoices, and altered accounting entries. He also applied for a $900,000 federal grant under fraudulent circumstances; however, authorities discovered the deception before any federal money was distributed.
“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 both local law enforcement through the Bay City Department of Public Safety and federal authorities at the FBI Michigan Division. Assistant United States Attorneys T. Patrick Martin and William Orr are prosecuting this case.
