Michael Bacigalupo, former executive director of the Bay City State Theatre, the Bay City Historical Society, and the Bay City Downtown Development Authority, pleaded guilty to wire fraud. From June 2020 to November 2023, he diverted more than $750,000 in nonprofit funds to pay for renovations to a public bandshell, which led the Bay City State Theatre to file for bankruptcy, as reported by the U.S. Attorney's Office.
Michael Bacigalupo used falsified documents, such as board minutes and invoices, to misappropriate funds from non-profits and attempted to obtain a $900,000 federal grant under false claims, which was stopped before release. According to the U.S. Attorney's Office, United States Attorney Jerome F. Gorgon Jr. said, "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."
Acting Special Agent in Charge of the FBI Michigan Division Reuben C. Coleman said, "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 and the Bay City Department of Public Safety investigated the case, with Public Safety Director Caleb Rowell noting, "They conducted a lengthy and very thorough investigation which will allow the community to move forward and justice to be served." The investigation resulted in Bacigalupo’s guilty plea, and the case is being prosecuted by Assistant United States Attorneys T. Patrick Martin and William Orr, as stated by the U.S. Attorney's Office.
