William A. Smith, the former Chief Financial Officer of the Detroit Riverfront Conservancy, has pleaded guilty to federal charges related to embezzling over $40 million from the organization. The announcement was made by United States Attorney Dawn N. Ison, alongside Cheyvoryea Gibson of the FBI’s Detroit Field Office and Charles Miller of IRS-Criminal Investigations in Detroit.
Smith admitted guilt to one count each of wire fraud and money laundering, both carrying a potential maximum sentence of 20 years imprisonment. According to court documents, Smith's tenure at the Conservancy spanned from 2011 until May 2024. During this period, he orchestrated a scheme involving multiple fraudulent activities.
The embezzlement involved transferring funds from the Conservancy's accounts to "The Joseph Group, Inc.," an entity owned by Smith that did not provide any services to the organization. Approximately $24.4 million was funneled through this channel between February 2013 and May 2024.
Additionally, Smith misused around $14.9 million in Conservancy funds via an American Express account under "William Smith & Associates LLC," another entity he controlled. Purchases included personal items such as furniture and airline tickets.
Smith also used Conservancy funds for unauthorized cashier’s checks for personal use without board approval and falsified bank statements to hide his actions. He further obtained a line of credit fraudulently on behalf of the Conservancy with Citizen’s Bank, using these funds to cover up his embezzlement.
Efforts were made by Smith to disguise the origins of stolen funds through complex transactions across various entities.
United States Attorney Ison stated, “William Smith admitted today to perpetrating a financial crime that is astonishing in its scope and impact.” She emphasized that Smith's actions betrayed both the Conservancy and the community it serves.
Cheyvoryea Gibson remarked on Smith’s decade-long deceitful actions that breached community trust while highlighting the FBI's commitment to tackling white-collar crimes.
Charles Miller noted the breach of trust within an organization aimed at benefiting Detroit’s outdoor spaces as "almost unfathomable." He stressed IRS-CI's crucial role in unraveling complex financial transactions leading to today's guilty plea.
Assistant U.S. Attorneys John K. Neal and Robert A. Moran are prosecuting this case with investigations conducted by the FBI and IRS-Criminal Investigations.