Home News Former CFO of Detroit Riverfront Conservancy Pleads Guilty to $40M Embezzlement Scheme

Former CFO of Detroit Riverfront Conservancy Pleads Guilty to $40M Embezzlement Scheme

Former CFO of Detroit Riverfront Conservancy Pleads Guilty to $40M Embezzlement Scheme

The Detroit Riverfront Conservancy’s former CFO, William Smith, 52, has pled guilty to charges including wire fraud and money laundering, as reported by multiple news outlets. According to details from the case highlighted byCBS News Detroit, Smith admitted to embezzling more than $40 million from the nonprofit focused on enhancing Detroit s riverfront. The charges against Smith come with the possibility of up to 20 years in prison for each count.

During the period from November 2012 to May 2024, Smith orchestrated a complex embezzlement operation, funneling Conservancy funds into bank accounts and an American Express account he controlled, further detailed byFOX 2 Detroit. Approximately $24.4 million was diverted to his company, The Joseph Group, while around $14.9 million was used to blatantly cover personal expenses spanning from luxury items to landscaping services. This fraudulent activity continued under Smith s watch until May 2024, only halting upon an FBI investigation initiated after financial discrepancies were noted by the Conservancy.

As part of his guilty plea, Smith has agreed to pay at least $44.3 million in restitution. The significant loss has, according to a statement obtained byClickOnDetroit, “astonishing” U.S. Attorney Dawn Ison with its scope and impact. Highlighting the betrayal by Smith, Ison remarked on the defendant’s deception, which siphoned community investments meant to enhance public spaces into pockets lined with greed.

Following Smith’s guilty plea, the Detroit Riverfront Conservancy released a statement expressing relief that accountability measures have begun to be put into place. “We are pleased to see Will Smith begin to be held accountable for his disgraceful actions,” the Conservancy stated onCBS News Detroit, crediting the U.S. Attorney s Office and the FBI for their swift investigation. They also outlined their continuous pursuit of civil litigation to recover stolen funds, emphasizing the intent to thoroughly reform financial operations as part of a determined effort to secure the riverfront s future. This was echoed by the Conservancy’s CEO, Ryan Sullivan, who indicated the nonprofit s resolve to emerge stronger from this situation.

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The embezzlement case, which unfolded over months of investigation and legal proceedings, culminated yesterday with Smith’s plea. Court documents revealed the extent of the fraudulent activities, including the forgery of documents to conceal the unauthorized financial transactions. Smith s dismissal from his CFO position followed an independent audit that triggered the FBI s involvement.

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