Former Detroit Riverfront Conservancy CFO charged with embezzling $40M during years-long scheme
(CBS DETROIT) - The former CFO of the Detroit Riverfront Conservancy has been charged with bank fraud and wire fraud, officials announced.
William A. Smith, 51, allegedly embezzled nearly $40 million from the Conservancy over a years-long scheme, according to U.S. Attorney Dawn N. Ison.
The Detroit Riverfront Conservancy is a nonprofit organization that was formed to develop public access to the Detroit International Riverfront from the Ambassador Bridge to Belle Isle. The organization receives funding from both public and private sources.
Smith was the nonprofit's CFO from 2011 until he was fired last week.
From November 2012 to March 2024, Smith allegedly embezzled millions of funds in two ways, according to a complaint.
Smith allegedly used Conservancy funds to pay charges that he and his family had accrued on his American Express account, and he also diverted the nonprofit's funds to The Joseph Group, a company he controlled.
To cover evidence of his embezzlement, Smith allegedly doctored bank statements that were provided to the Conservancy's accountant, according to the complaint.
Officials say in 2023, Smith allegedly got a $5 million line of credit from Citizens Bank on behalf of the nonprofit. The bank asked for a document confirming Smith had the authority to obtain this line of credit for the Conservancy. Smith allegedly provided the bank with a false document with a forged signature of the Conservancy's secretary.
Smith is accused of using funds he received from this line of credit as part of his embezzlement scheme.
The former CFO is scheduled to appear in court at 1 p.m.
Matt Cullen, Chairman of the Board for the Detroit Riverfront Conservancy, released the following statement regarding the charges: "We commend the FBI and U.S. Attorney's Office for the quick and thorough start to their investigation, which led today to the arrest of William Smith. We will continue to cooperate with law enforcement to ensure justice is brought against this nefarious scheme to subvert layers of financial controls and embezzle resources from one of the greatest waterfront projects in the United States."