Former Detroit Riverfront Conservancy CFO pleads guilty in $40M embezzlement scheme
(CBS DETROIT) — Former Detroit Riverfront Conservancy CFO William Smith pleaded guilty Friday to embezzling more than $40 million from the Conservancy.
Smith pleaded guilty to one count of wire fraud and one count of money laundering. Both counts carry a maximum sentence of 20 years in prison.
According to the plea agreement, Smith embezzled millions from the Conservancy from November 2012 until May 2024. Between February 2013 and May 2024, the 52-year-old moved $24.4 million in Conservancy funds from the organization's bank accounts to the bank account of "The Joseph Group," a company Smith owned.
Smith also had an American Express account in the name of another entity that he owned called "William Smith & Associates LLC." There were four American Express credit cards associated with the account. From November 2012 until May 2024, Smith used about $14.9 million in Conservancy to pay for purchases he made on the account. According to the plea agreement, those purchases included designer clothing, handbags, furniture, airline tickets, lawn care services and other goods and services for his family.
U.S. Attorney Dawn Ison said Smith also used Conservancy funds to buy cashier's checks, which were unauthorized and used without the approval of the Conservancy's Board of Directors.
"William Smith admitted today to perpetrating a financial crime that is astonishing in its scope and impact," said Ison. "Smith stole over $40 million dollars from the Detroit Riverfront Conservancy – a non-profit organization dedicated to creating beautiful public spaces that Detroit's residents and visitors can use and enjoy. Smith not only betrayed the Conservancy's trust, but he betrayed the trust of the whole community, all so that he could enjoy the trappings of wealth and comfort. I remain shocked at the scale of the fraud and the harm it has caused, and today's guilty plea is an important step towards holding Mr. Smith accountable for his outrageous conduct."
As part of Smith's plea agreement, he agrees to pay at least $44.3 million in restitution.
The Conservancy issued this statement following Smith's guilty plea:
"We are pleased to see Will Smith begin to be held accountable for his disgraceful actions.
We thank the U.S. Attorney's Office and the Federal Bureau of Investigation for a remarkably speedy and thorough investigation leading to this plea agreement. It requires Smith to identify his assets and cooperate fully with the government's attempts to secure restitution of money stolen from the Conservancy.
This is an important step in the process, but our work does not end here. We will continue to pursue civil litigation in pursuit of the stolen money. We also will complete the review of our financial operations and announce a series of reforms that address lessons learned from this scandal. Finally, we will continue to work with our partners to ensure that our projects will be completed on schedule and our operations sustained into the future.
The victims in this case are the Conservancy, its generous donors, the People of the City of Detroit and the State of Michigan, and everyone who has enjoyed the international riverfront, consistently voted the greatest of its kind in the nation.
Today's actions are part of our deliberate, determined effort to secure the future of the Detroit Riverfront. We are coming out of this stronger."
Smith served as the Conservancy's CFO from 2011 until he was fired in May amid an FBI investigation.