DETROIT – Federal prosecutors are looking to sentence the former Detroit Riverfront Conservancy CFO to 18 years in prison after he embezzled millions from the nonprofit for over ten years.
Prosecutors said William Smith, former CFO of the Detroit Riverfront Conservancy, embezzled over $40 million from the nonprofits on almost only goods and services for himself, his family and his personal associates from November 2012 through May 2024.
He pleaded guilty to one count of wire fraud and one count of money laundering in November 2024.
What prosecutors said Smith spent with embezzled money
Federal prosecutors said Smith used the embezzled money towards his lavish lifestyle. Here’s what he spent the money on:
Spent money on significant other
In January 2021, using Conservancy funds, Smith paid for the lease of a new Maserati Levante for his girlfriend. His girlfriend signed a contract for a three-year closed-end lease of the car with a one-time payment of $63,452.47, using the $68,000 Smith sent to her on Jan. 22, 2021.
Throughout the multi-year scheme, he spent about $3.7 million from the Conservancy funding for his girlfriend. The amount includes only wire transfers; it does not include gifts, travel or jewelry that Smith spent on his girlfriend.
Chartered a yacht for a Mediterranean cruise
In October 2021, Smith and his girlfriend chartered a private yacht called “The XO of the Sea” for a weeklong Mediterranean cruise. He paid $100,016.13 for the boat rental.
Purchased from luxury brands
Smith bought more than $526,000 in items from Gucci and Louis Vuitton.
Embezzled money for sports games
He spent more than $507,000 on floor seats for Detroit Pistons games.
He also spent nearly $45,000 to attend a Detroit Lions game at the Los Angeles Rams stadium in October 2021. He rented a private suite for $29,000, $3,533.16 at the stadium’s suites restaurant, and stayed for two nights at the Shay Ivy Station for $2,350.74. He also spent $1,686.28 at Nusr-Et while staying in California.
Trip to Las Vegas
In June 2021, Smith went on a two-day trip to Las Vegas. He stayed at the boutique Cromwell Hotel. There, he spent the following:
- $8,219.01 at the Drais Rooftop
- $5,656.44 at the Drais Beach Club
- Charted a private jet. Round-trip cost $94,023
Other luxury purchases he made
Smith charged over $94,000 in airline tickets for himself and his girlfriend.
He spent $54,400 at Golden Sun Jewelry in Southfield in September 2022.
In March 2019, Smith put a $24,989 deposit for a wedding venue in Mexico. In June 2020, he spent another $35,000 on the wedding venue.
He also embezzled from the nonprofit to pay off his American Express bills between November 2012 and March 2024. The average monthly credit card payment was $70,000, and the total was more than $14 million.
How Smith tried to hide embezzlement, according to feds
Prosecutors believe he covered up his long-running fraud scheme by falsifying bank statements that he provided to the Conservancy’s bookkeeper, altering or deleting unauthorized transfers on the statements to keep them off the Conservancy books.
When funds were low in the Conservancy account, Smith took out a line of credit with a financial institution on behalf of the Conservancy. He claimed to be acting with the authorization of the Conservancy’s Board of Directors in taking out this line of credit. Federal prosecutors said Smith had no authority, and the documents he provided to the bank showed that he forged the documents.
Smith then used the funds from the line of credit to infuse monies into the Conservancy’s bank accounts to cover up his embezzlement from the accounts.
He also took complex steps to conceal the source and nature of the embezzled funds. In September 2021, he wired $98,600 from Conservancy’s account at Comerica Bank to The Joseph Group’s account at Bank of America in advance to buy a home in Texas. He then wire-transferred money to multiple accounts he controls, particularly YBE Food Group.
The funds transferred from the YBE Food Group account to Smith’s personal bank account were among the funds Smith used to purchase a cashier’s check on Sept. 27, 2021, for $429,034.62 He then bought the house in Texas in October 2021.
How the Conservancy discovered embezzlement scheme
The leadership of the Conservancy became concerned about the nonprofit’s financial condition following a board meeting in March 2024 and questioned Smith’s evasive answers on the topic.
In April 2024, Smith took a leave of absence from the Conservancy after he became physically ill. The nonprofit then brought in an outside firm to review the organization’s finances.
By early May 2024, the nonprofit suspended Smith and then reported the fraud scheme to the police for an investigation.
On June 4, 2024, Smith was federally charged. He pleaded guilty through a plea agreement on Nov. 15, 2024.
Smith is set to be sentenced on April 24, 2025.
Victim impact statements
Victim impact statements were submitted by employees and board members of the Conservancy to express the significant impact it made on their lives.
Many talked about how betrayed they felt that a trusted friend and employee stole from the Conservancy and fear of being unemployed.
Some victims expressed that the theft could have caused the loss of trust that residents and donors had placed in the nonprofit. The fraud scheme left the organization unable to pay vendors and construction workers on time for the work they put into the Conservancy.
One employee said that while she was pregnant, she lost her medical insurance because the nonprofit could not pay the premiums.
Most of the victims felt that because Smith stole from a nonprofit organization whose mission was to improve the community, he was really stealing from all of the city. One victim provided the following statement to prosecutors:
Our abandoned industrial waterfront was nothing but broken promises and forgotten dreams. But … a host of philanthropic partners saw something else: we saw possibility. Our community rallied together, matching (Kresge’s) initial investment with $110 million more – not just money, but a declaration of faith in Detroit’s future. Every dollar represented a family’s belief that their children deserved better, that our city deserved better. This is why Mr. Smith’s embezzlement cuts so deeply. When he stole from the Conservancy, he didn’t just take money – he betrayed the trust of every child who plays along our riverfront, every senior who finds peace watching the sunset over the water, every family who gathers there to celebrate life’s precious moments. He betrayed the trust of countless Detroiters who gave what they could, believing in a better tomorrow for our city.
Sentencing request
Federal prosecutors argued that although Smith doesn’t have a criminal history and accepted responsibility for his crimes, they believe the aspects of his history and characteristics should be considered in the sentencing of the case.
“Smith’s behavior throughout his scheme illustrates a man with a disquieting comfort with lies and deceptions,” said prosecutors in court documents. “Smith made an ample salary at the Conservancy and enjoyed a standard of living that many would envy. This was in no way a crime borne out of desperation or necessity.”
Prosecutors are requesting Smith to be sentenced to 216 months, or 18 years, in prison based on his nearly 12-year embezzlement scheme.
