The former Chief Financial Officer for the Detroit Riverfront Conservancy pleaded guilty today for a years-long scheme to embezzle over $40 million from the Conservancy.
William A. Smith, 52, pleaded guilty to one count of wire fraud and one count of money laundering. He faced 40 years in prison.
According to court documents, Smith, of Northville, served as the Chief Financial Officer for the Detroit Riverfront Conservancy, Inc. The nonprofit was created to enhance access to the Detroit riverfront, according to federal authorities.
Federal prosecutors said Smith began his scheme no later than November 2012, continuing until May 2024, embezzling millions in Conservancy funds through three primary methods, according to officials.
Smith diverted Conservancy funds into a bank account under “The Joseph Group, Inc.,” an entity he owned and controlled. The Joseph Group was not an approved Conservancy vendor and provided no goods or services. Between February 2013 and May 2024, Smith transferred approximately $24.4 million into this account.
Smith used $14.9 million in Conservancy funds to pay off personal expenses charged to an American Express account tied to another entity he controlled, “William Smith & Associates LLC.” Over the years, Smith used the account for luxury purchases, including furniture, designer clothing, handbags, lawn care services, and airline tickets, federal prosecutors.
Smith used Conservancy funds to purchase cashier’s checks from various financial institutions for his personal benefit, without approval from the Conservancy’s board, officials said.
Court documents also reveal that Smith falsified bank statements and forged documents to conceal his theft.
Smith agreed to pay at least $44.3 million in restitution as part of his plea agreement. Prosecutors noted the difficulty in quantifying the full scope of the losses due to the scheme’s complexity.
