(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 during a yearslong scheme, according to U.S. Attorney Dawn N. Ison.
The Detroit Riverfront Conservancy is a nonprofit organization 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 served as the nonprofit’s CFO as of 2011 until he was fired last week.
According to a complaint, Smith allegedly embezzled millions of funds in two ways between November 2012 and March 2024.
Smith allegedly used Conservancy funds to pay for expenses he and his family accrued on his American Express account, and he also funneled the nonprofit’s money to The Joseph Group, a company he controlled.
To conceal evidence of his embezzlement, Smith allegedly falsified bank statements provided to the Conservancy’s accountant, according to the complaint.
Officials say Smith allegedly obtained a $5 million line of credit from Citizens Bank on behalf of the nonprofit in 2023. The bank requested a document confirming that 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 the money he received from this line of credit as part of his embezzlement scheme.
The former CFO will appear in court at 1 p.m
Matt Cullen, chairman of the board of directors of the Detroit Riverfront Conservancy, released the following statement on the charges: “We commend the FBI and the U.S. Attorney’s Office for the swift and thorough initiation of their investigation, which led to today’s arrest of William Smith. We will continue to work with law enforcement to ensure justice is brought against this nefarious scheme to undermine layers of financial control and misappropriate resources from one of the largest waterfront projects in the United States.”
