(CBS DETROIT) – The Detroit Riverfront Conservancy fired controversial chief financial officer William Smith on Friday. Smith is currently the subject of an FBI investigation.
The nonprofit’s Chief Executive Officer, Mark Wallace, has also resigned but will remain with the group as an advisor during the transition. Ryan Sullivan was hired as interim CEO.
Smith was placed on unpaid leave in mid-May after discrepancies in financial statements were discovered in April. The nonprofit’s board ordered an investigation by the accounting firm PwC and the law firm Honigman. The group asked former U.S. Attorney Matthew Schneider, who is leading Honigman Law Firm investigators, to present evidence against Smith to Michigan State Police and request a criminal investigation. The FBI has since took over the research because of its complexity.
A letter from Schneider to Smith’s attorney informing them of the board’s intention to fire Smith states: “Our investigation has revealed that Mr. Smith has embezzled significant sums of money from DRFC and DRFC funds for his own personal use. Mr. Smith’s unlawful conduct spans several years. We are therefore terminating his employment with the DRFC with immediate effect.’
According to the Detroit Riverfront Conservancy, the two independent studies estimated the loss to the nonprofit at more than $40 million.
“As volunteers, we believed the right team and processes were in place to protect the financial integrity of the organizations,” the board said in a statement. “That belief has been debunked by the recent discovery of this significant financial crime.”
The nonprofit recently hired Quatrro Business Support Solutions to oversee day-to-day accounting and finance functions.
