(CBS DETROIT) – The Detroit Riverfront Conservancy will no longer work with former CEO Mark Wallace as his role as interim adviser ends Sunday.
The conservancy confirmed that Wallace’s contract expires a month after he steps down as CEO on May 31. Officials did not provide further details. After his resignation, the conservancy hired Ryan Sullivan as interim CEO.
When Wallace resigned, the Conservancy announced that it firing former CFO William A. Smith during a federal investigation.
Wallace has not been accused of any wrongdoing and the conservation organization has stated the reason for his resignation.
Smit is accused of embezzlement of $40 million of the organization over the years. Officials said Smith allegedly used conservation funds to pay for expenses he and his family accrued on his American Express account, and that he also diverted the nonprofit’s money to The Joseph Group, a company he controlled .
A federal judge a temporary restriction granted Smith and other individuals are prohibited from accessing up to $39.3 million in assets. The restraining order applies to checking and savings accounts, retirement and investment accounts, loans and lines of credit related to Smith or his business. Also listed in court documents were two Can-Am motorcycles, a yacht and 21 properties in Detroit, Texas and Georgia, and a condominium in Mexico.
In the lawsuit, Judge Linda Parker wrote that Smith tried to hide his assets under “Smith Entities,” which are 17 business entities he owns or controls. Parker also wrote that Smith was trying to sell the property and the yacht.
