William Smith, former CFO of the Detroit Riverfront Conservancy, admitted to orchestrating a $44.3 million fraud scheme spanning 12 years, one of the most significant financial crimes in Detroit’s history.
On Friday, the 52-year-old confessed to siphoning funds meant for revitalizing Detroit’s riverfront, instead indulging in luxury real estate, jewelry, travel, and even charter flights for basketball players.
“The money was transferred via wire transfer for my own personal use,” Smith stated before U.S. District Judge Susan DeClercq.
The scandal exposed lapses in oversight at the nonprofit, funded by Detroit’s top philanthropies. Conservancy CEO Ryan Sullivan, who took over after Smith’s firing and the resignation of former CEO Mark Wallace, vowed reforms.
“We are pleased to see Will Smith begin to be held accountable for his disgraceful actions,” Sullivan said.
Court filings revealed Smith used $15.6 million to cover personal American Express charges and wired $24.4 million to his company, Joseph Group & Associates. A $1.3 million Novi mansion, international properties, a yacht, and even a $50,000 jewelry spree were among his ill-gotten gains.
“This fraud broke the trust of the entire community,” said Cheyvoryea Gibson, FBI special agent in Michigan.
Prosecutors said Smith falsified documents, restricted access to financial records, and even handed manipulated bank statements to an employee in a Honey Baked Ham parking lot to conceal his crimes.
“The victims in this case include the people of Detroit and everyone who cherishes our riverfront,” Sullivan emphasized.
His sentencing is set for March 20th, with Smith facing up to 20 years in prison. In addition to criminal charges, Smith agreed to pay restitution and assist in recovering stolen assets.
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