### Ex-Detroit Nonprofit CFO Admits to Embezzling Over $40 Million

William A. Smith, the former chief financial officer of the Detroit Riverfront Conservancy, has admitted to embezzling tens of millions of dollars from the organization charged with transforming Detroit’s waterfront into a vibrant public space. He pleaded guilty to federal charges of wire fraud and money laundering, both carrying maximum penalties of 20 years in prison.

Court documents reveal Smith stole between $40 million and $65 million over an extended period. According to the U.S. Attorney's Office for the Eastern District of Michigan, Smith's fraudulent activities began in November 2012 and continued until he was terminated in May 2024. Federal prosecutors described the scheme as "astonishing in its scope and impact."

Smith misappropriated approximately $24.4 million by transferring funds from the conservancy to an account for the Joseph Group, Inc., a company he owned. In addition, he used around $14.9 million of the conservancy's money to cover personal expenses made through an American Express account linked to his company, William Smith & Associates, LLC.

To further fund his lavish lifestyle, Smith used nonprofit funds to purchase cashier's checks for personal use, falsified bank statements, and even forged authorization forms to secure lines of credit.

The plea agreement stipulates that Smith will pay no less than $44.3 million in restitution. Despite the difficulties in precisely determining the total losses, authorities conservatively estimate them to be between $40 million and $65 million.

Ryan Sullivan, CEO of the Detroit Riverfront Conservancy, expressed satisfaction with Smith being held accountable and emphasized the nonprofit's commitment to recovering the stolen funds through civil litigation. He also stated that the conservancy will soon announce a series of financial reforms to prevent future fraud.

Cheyvoryea Gibson, the special agent in charge of the FBI’s Michigan field office, highlighted the community-wide betrayal brought about by Smith’s deceitful actions over more than a decade.

This scandal has illuminated significant vulnerabilities within the conservancy’s financial oversight, prompting steps to restore trust and ensure that funds are appropriately used to benefit the Detroit waterfront and its community.