Judge freezes up to $39.3M in former Detroit Riverfront CFO's assets after alleged embezzlement
(CBS DETROIT) - A federal judge granted a temporary restraining order, banning former Detroit Riverfront Conservancy CFO William A. Smith and other individuals from accessing up to $39.3 million in assets.
This comes as Smith is accused of embezzling nearly $40 million from the conservancy over a years-long scheme. Federal prosecutors charged Smith with bank fraud and wire fraud. The conservancy fired Smith while the FBI investigated him.
The restraining order applies to checking and savings accounts, retirement and investment accounts, loans and lines of credit associated with Smith or his business. Court documents also listed two Can-Am motorcycles, a yacht, and 21 properties in Detroit, Texas and Georgia, and a condominium in Mexico.
In the court filing, Judge Linda Parker wrote that Smith attempted to hide his assets under "Smith Entities", which are 17 corporate entities that he owns or controls. Parker also wrote that Smith attempted to sell the properties and the yacht.
"The Court finds that the Government has a strong likelihood of establishing that the loss of the $39.3 million dollars—and their unavailability for restitution and forfeiture—is a "continuing and substantial injury" to the United States, the Detroit RiverFront Conservancy, Comerica Bank, and the Conservancy's donors and financial partners," Parker wrote.
The temporary restraining order is effective for 14 days from the day it was issued.
Federal officials said Smith allegedly used funds from the conservancy to pay charges that he and his family had accrued on his American Express account. He also diverted the nonprofit's funds to The Joseph Group, a company he controlled.
According to the complaint, Smith allegedly doctored bank statements provided to the conservancy's accountant to cover up evidence of his embezzlement.