(CBS-DETROIT) – Former Detroit Riverfront Conservancy CFO William Smith pleaded guilty Friday embezzled more than $40 million from the Conservatory.
Smith pleaded guilty to one count of bank fraud and one count of money laundering. Both charges carry a maximum prison sentence of 20 years.
According to the plea agreement, Smith embezzled millions from the Conservancy from November 2012 to May 2024. Between February 2013 and May 2024, the 52-year-old transferred $24.4 million in Conservancy funds from the organization’s bank accounts to the bank account of “The Joseph Group,” a company owned by Smith.
Smith also had an American Express account in the name of another entity he owned called “William Smith & Associates LLC.” There were four American Express credit cards linked to the account. From November 2012 to May 2024, Smith used approximately $14.9 million from Conservancy to pay for the purchases he made on the account. According to the plea agreement, these 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 purchase checks, which were unauthorized and used without the approval of the Conservancy’s Board of Directors.
“William Smith today admitted to committing a financial crime that is astonishing in its scale and impact,” Ison said. “Smith stole more than $40 million dollars from the Detroit Riverfront Conservancy – a nonprofit organization dedicated to creating beautiful public spaces for Detroit residents and visitors to use and enjoy. Smith has not only betrayed the trust of the Conservancy, but he has betrayed the trust of the whole. community, all so that he could enjoy the trappings of wealth and comfort. I remain shocked by the extent of the fraud and the damage it has caused, and today’s guilty plea is an important step towards holding Mr Smith to account. for his scandalous behavior.”
As part of Smith’s plea deal, he agrees to pay at least $44.3 million in restitution.
The Conservancy released this statement following Smith’s guilty plea:
“We are pleased to see Will Smith being held accountable for his shameful actions.
We thank the U.S. Attorney’s Office and the Federal Bureau of Investigation for a remarkably quick and thorough investigation that led to this settlement. It requires Smith to identify his assets and fully cooperate with the government’s efforts to secure the return of money stolen from the Conservancy.
This is an important step in the process, but our work doesn’t end there. We will continue to pursue civil proceedings in the search for the stolen money. We will also complete the review of our financial activities and announce a series of reforms that address the lessons learned from this scandal. Finally, we will continue to work with our partners to ensure that our projects are completed on time and that our operations can continue into the future.
The victims in this case are the Conservancy, its generous donors, the residents of the city of Detroit and the state of Michigan, and everyone who has enjoyed the international riverfront it has consistently voted the largest of its kind in the country.
Today’s actions are part of our deliberate, determined efforts to secure the future of the Detroit Riverfront. We will come out of this stronger.”
Smith served as CFO of the Conservancy from 2011 until his death May fired in the middle of one FBI investigation.
