FBI taking over financial investigation after Detroit Riverfront Conservancy CFO placed on leave
(CBS DETROIT) - The Federal Bureau of Investigation will now handle the investigation into the alleged financial wrongdoing by the Chief Financial Officer of the Detroit Riverfront Conservancy.
The investigation was prompted after the Honigman Law Firm presented evidence of financial wrongdoing by the CFO, William Smith, according to a statement from Chairman of the Board for the Detroit Riverfront Conservancy Matt Cullen.
Smith was placed on unpaid leave. The board requested a criminal investigation from Michigan State Police, but on Tuesday, Cullen announced that MSP said the investigation was too complex, so they turned it over to the FBI.
"At my direction, last week, the Honigman Law Firm brought evidence of financial wrongdoing by the Conservancy's Chief Financial Officer to the Michigan State Police and requested a criminal investigation," said Cullen. The State Police have advised us that due to the nature and complexity of the situation they have turned the investigation over to the Federal Bureau of Investigation. We are cooperating with authorities and are determined to do whatever it takes to get to the bottom of this matter."
The Conservancy has hired Quatrro Business Support Solutions to oversee day-to-day accounting and finance functions.
Cullen also said they will share what happened, how it happened, and the Conservancy's plans for the future as soon as they can.
"As I said last week, the riverfront is a beloved and important asset to the community, and we are committed to building a vibrant space for all metro Detroiters to enjoy. The project is moving ahead and will be stronger because of what we learn from the Board-controlled internal review and the criminal investigation. We owe it to our donors, other key stakeholders, and the entire Detroit community to be transparent and accountable about this situation – and that's exactly what we will be."