Home / Crime and Justice / Civic Leader Jailed for Nonprofit Fraud
Civic Leader Jailed for Nonprofit Fraud
29 Apr
Summary
- Leader sentenced to two years in prison for defrauding nonprofits.
- Ordered to pay over $347,000 in restitution to two organizations.
- Diverted funds for bandshell project, causing bankruptcy and layoffs.
Michael Bacigalupo, a 64-year-old civic leader from Essexville, has been sentenced to two years in federal prison for defrauding two Bay City nonprofits. He was also ordered to pay $196,641.17 in restitution to the Bay County Historical Society and $151,000 to the historic Bay City State Theatre.
Authorities stated that Bacigalupo, who held leadership roles from June 2020 to November 2023, illegally diverted funds without board consent. These funds were used for renovating a bandshell at Wenonah Park.
His scheme involved falsifying documents to secure an $800,000 loan for the State Theatre, leading to its bankruptcy. He also manipulated accounting records and fabricated invoices, diverting $231,541 from the Historical Society, which hampered museum renovations and led to staff layoffs.
Bacigalupo also attempted to secure a $900,000 federal grant using misrepresented information. He pleaded guilty to conspiracy to commit wire fraud in September and will serve two years of supervised release after his prison term.
