DETROIT – The former CFO of the Detroit Riverfront Conservancy has been sentenced for stealing millions of dollars from the nonprofit.
Former Chief Financial Officer William Smith was formally fired from the nonprofit in May 2024 amid an FBI investigation. More than $40 million was reportedly embezzled and spent on airline tickets, hotels, limos, clothing, jewelry, luxury goods and more.
He pleaded guilty to wire fraud and money laundering in November.
According to the plea agreement, Smith admitted to orchestrating a scheme to embezzle Detroit Riverfront Conservancy funds from November 2012 through May 2024.
Read: How former Detroit Riverfront CFO embezzled $40 million undetected for over a decade
According to a criminal complaint, Smith had used Conservancy funds to pay for his family’s credit card bills and diverted nonprofit funds to The Joseph Group, a company he controlled.
Authorities said neither of Smith’s actions was authorized or approved by the Board, that The Joseph Group was not an approved vendor and provided no services to the nonprofit. As CFO, Smith had sole access and control over the Conservancy’s bank accounts and was the only person with the password for its business checking account online portal.
Smith reportedly doctored bank statements provided to the Conservancy’s accountant, which resulted in falsified financial information being entered into the nonprofit’s accounting software, which hid the fraud.
The Detroit Riverfront Conservancy pushed for its former CFO to get the maximum 20-year sentence ahead of his sentencing, Thursday, April 24. Prosecutors pushed for an 18-year prison sentence.
The judge split the difference and Smith was sentenced to 19 years in federal prison, the same amount of time Smith spent at the nonprofit. Additionally, Smith was sentenced to three years of supervised release and has been ordered to pay at least $44.3 million in restitution.
The Detroit Riverfront Conservancy applauded the judge for the sentence and stated they will continue to “pursue all criminal and civil court avenues to reclaim assets he stole from this community.”
