DETROIT, MI. – William A. Smith, the former Chief Financial Officer of the Detroit Riverfront Conservancy (DRFC), was sentenced today to 19 years in federal prison for orchestrating a massive embezzlement scheme that siphoned over $40 million from the non-profit organization over an eleven-year period.
Acting United States Attorney Julie Beck announced the sentence, which also includes three years of supervised release, an order to pay approximately $44.3 million in restitution, and the forfeiture of assets traceable to his illicit activities.
The announcement was made in conjunction with Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Field Office, and Charles Miller, Special Agent in Charge of the IRS-Criminal Investigation’s Detroit Field Office.
Smith, 52, had previously pleaded guilty in November 2024 to one count of wire fraud and one count of money laundering before United States District Judge Susan K. DeClercq.
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“William Smith stole an astonishing amount of money from an important community institution, and he spent that money to finance an extravagant lifestyle. Every dollar that Smith spent on luxury goods for himself is a dollar that the Conservancy could not spend beautifying and improving our city’s riverfront,” said Acting U.S. Attorney Beck. “This is one of the most egregious economic crimes in recent memory in this District. Smith has now been held accountable for his criminal activity, and we hope that today’s sentence deters any others who contemplate enriching themselves at the expense of a public trust.”
Special Agent in Charge Gibson of the FBI echoed this sentiment, stating, “Today’s sentencing of William Smith marks the conclusion of a scheme, spanning more than a decade, deeply violating the trust of his employer and the community. Mr. Smith exploited his position of authority for personal financial gain. This outcome is the result of the hard work and dedication from members assigned to the FBI Detroit’s Complex Financial Crimes (CFC) Squad and the successful prosecution by the U.S. Attorney’s Office of the Eastern District of Michigan. We remain committed to working with our partners to investigate and pursue those who violate federal laws.”
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IRS-CI Special Agent in Charge Miller further highlighted the betrayal of public trust. “As the trusted leader of a local advocacy nonprofit, William Smith had a duty to be a responsible steward of the organization’s funds, especially the money raised to beautify and increase access to the Detroit Riverfront. Mr. Smith proved he did not deserve that trust when he stole over $40 million from the Conservancy and, by proxy, everyone who would enjoy the riverfront for many years to come. IRS Criminal Investigation is proud to work with the US Attorney’s Office of Eastern Michigan and our law enforcement partners to ensure that justice is served, and Mr. Smith is held accountable for such an egregious breach of trust; stealing a huge amount of money to fund his personal lifestyle.”
According to court documents, Smith served as the Chief Financial Officer for the Detroit Riverfront Conservancy, Inc. from 2011 until his termination in May 2024. The Conservancy, a 501(c)(3) organization, is dedicated to developing public access to the Detroit riverfront, envisioning a continuous Riverwalk and accompanying green spaces funded by private donations and public grants. As CFO, Smith held significant authority over the Conservancy’s financial operations.
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The investigation revealed that Smith’s elaborate scheme began no later than November 2012 and continued for over a decade. The embezzlement took three primary forms:
- Diversion of Funds to a Shell Company: Smith transferred approximately $24.4 million in Conservancy funds to an account held by “The Joseph Group, Inc.,” an entity he owned and controlled. This company was not an approved vendor and provided no services to the DRFC.
- Unauthorized Use of American Express Account: Smith used a credit card account under the name “William Smith & Associates LLC,” another entity he controlled, to make approximately $14.9 million in unauthorized personal purchases. These expenditures, which included furniture, designer clothing, handbags, lawn care, and travel, were paid for with Conservancy funds despite the organization having its own approved credit card accounts.
- Purchase of Unauthorized Cashier’s Checks: Smith utilized Conservancy funds to purchase cashier’s checks for his personal use without the knowledge or approval of the Conservancy’s Board of Directors.
To conceal his extensive fraud, Smith engaged in a series of deceptive practices. He falsified bank statements provided to the Conservancy’s bookkeeper, altering or deleting unauthorized transactions.
Additionally, he fraudulently obtained a $5 million line of credit from Citizen’s Bank on behalf of the Conservancy, forging documents to falsely claim board authorization. Smith then used these funds to temporarily mask his ongoing embezzlement from the Conservancy’s main accounts.
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Sentencing documents revealed the staggering extent of Smith’s lavish spending, fueled by the stolen funds. He reportedly spent exorbitant amounts on basketball tickets, cruises, private jet travel, designer apparel, and jewelry.
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