of Daniel Johnson

November 17, 2024

Smith pleaded guilty to fraud and money laundering charges.

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William Smith, former CFO of the Detroit Riverfront Conservancy, pleaded guilty Nov. 15 to a series of financial crimes, including stealing $44 million from the organization that led to delays on a major riverfront project.

Conformable wealthSmith, aged 52 he was arrested in June, and investigators said he routinely used money from the organization’s coffers for travel, hotels, a limo, clothing and jewelry.

Smith pleaded guilty to fraud and money laundering charges in his Nov. 15 court appearance and admitted the loss of money to the nonprofit was at least $44 million.

Smith could face more than 15 years in prison when he returns to court in March 2025 for his sentencing.

According to Cheyvoryea Gibson, FBI lead in Detroit, “Mr. Smith’s deceptive actions, spanning more than a decade, not only broke the trust of his employer, but the entire community.”

Statement by Conservancy CEO Ryan Sullivan to Detroit Free Pressnoted that Smith’s actions prompted the organization to implement reforms aimed at preventing similar situations in the future. Sullivan pointed out that these measures the purpose of strengthening accountability and ensure greater oversight within the organization.

“We are pleased to see Will Smith begin to be held accountable for his shameful actions. We thank the US Attorney’s Office and the Federal Bureau of Investigation for a remarkably swift and thorough investigation that led to this plea agreement. This is an important step in the process, but our work does not stop there,” the statement said.

The embezzlement scheme involved Smith transferring $24 million in funds from the organization to one of his companies and another $15 million to American Express to pay off credit cards owned by himself and his family, according to federal prosecutors.

Smith’s fraudulent activity somehow went undetected until March 2024, when an internal audit was initiated and the findings of the investigation turned over to the Michigan State Police and then the FBI.

Smith also allegedly took out a $5 million line of credit in 2023, using documents that were allegedly falsified to hide the group’s cash flow problems. There is a separate civil forfeiture case and a local civil suit against Smith, both of which are currently pending.

Smith also had $39 million of his assets frozen in the federal case, except for up to $3,421 a month for a property Smith maintains. A temporary restraining order allows for the controlled sale of Smith’s property, with the proceeds retained to benefit Smith’s victims and subject to court approval.

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