DETROIT – Former Detroit Riverfront Conservancy CFO William A. Smith, 52, pleaded guilty Friday to embezzling more than $40 million from the nonprofit in a years-long scheme.
Smith pleaded guilty to one count of wire fraud and one count of money laundering. He faces up to 20 years in prison.
According to the plea agreement, Smith admitted to orchestrating a scheme to embezzle Detroit Riverfront Conservancy funds from November 2012 through May 2024.
Smith transferred conservancy funds into a bank account of The Joseph Group, a company he owned. About $24.4 million of the conservancy’s funds were put into this account over the course of the scheme.
He also used the funding to pay off credit cards that he used to purchase furniture, designer clothing, handbags, lawn care services, airline tickets and other items for himself and his family, according to court documents.
Additionally, cashier checks were purchased by Smith using the nonprofit’s money, and were used “for his own purposes without the knowledge or approval of the Conservancy’s Board of Directors,” according to a release from United States Attorney Dawn N. Ison.
“William Smith admitted today to perpetrating a financial crime that is astonishing in its scope and impact,” said Ison. “Smith stole over $40 million dollars from the Detroit Riverfront Conservancy – a non-profit organization dedicated to creating beautiful public spaces that Detroit’s residents and visitors can use and enjoy. Smith not only betrayed the Conservancy’s trust, but he betrayed the trust of the whole community, all so that he could enjoy the trappings of wealth and comfort. I remain shocked at the scale of the fraud and the harm it has caused, and today’s guilty plea is an important step towards holding Mr. Smith accountable for his outrageous conduct.”
As part of the plea agreement, Smith has agreed to pay at least $44.3 million in restitution.
The Detroit Riverfront Conservancy plans to continue to pursue litigation to retrieve the stolen money.
“We are pleased to see Will Smith begin to be held accountable for his disgraceful actions.
We thank the U.S. Attorney’s Office and the Federal Bureau of Investigation for a remarkably speedy and thorough investigation leading to this plea agreement. It requires Smith to identify his assets and cooperate fully with the government’s attempts to secure restitution of money stolen from the Conservancy.
This is an important step in the process, but our work does not end here. We will continue to pursue civil litigation in pursuit of the stolen money. We also will complete the review of our financial operations and announce a series of reforms that address lessons learned from this scandal. Finally, we will continue to work with our partners to ensure that our projects will be completed on schedule and our operations sustained into the future.
The victims in this case are the Conservancy, its generous donors, the People of the City of Detroit and the State of Michigan, and everyone who has enjoyed the international riverfront, consistently voted the greatest of its kind in the nation.
Today’s actions are part of our deliberate, determined effort to secure the future of the Detroit Riverfront. We are coming out of this stronger.”
Ryan Sullivan, CEO Detroit Riverfront Conservancy
Smith was placed on leave and later fired as CFO after an independent audit and financial statements were provided to the nonprofit’s board, which prompted an FBI investigation.
