DETROIT – William A. Smith, 51, the former Chief Financial Officer for the Detroit Riverfront Conservancy, was charged with Bank Fraud and Wire Fraud in a criminal complaint unsealed today in federal court.
The charges arose out of what is alleged to be a years-long scheme by Smith to embezzle Conservancy funds for his own use. According to the complaint, between November 2012 and March 2024, Smith stole nearly $40 million from the DRFC through a two-pronged embezzlement scheme.
First, Smith allegedly used Conservancy funds to pay for charges he and his family accrued on an American Express account. Second, Smith diverted Conservancy funds to a company he controlled called “The Joseph Group.” Neither of these sets of expenditures were authorized or approved by the Board of the DRFC.
The complaint alleges that Smith carried out his scheme by doctored bank statements provided to the Conservancy’s accountant for entry into the DRFC’s accounting software. These false bank statements led to erroneous financial information being entered into the DRFC’s books, thereby concealing the fraud.
“The Detroit Riverfront Conservancy’s mission is to transform one of our city’s greatest assets, the riverfront, into a vibrant and safe space for all to gather and enjoy. This defendant is alleged to have abused the trust the Conservancy placed in him and to have carried out a fraud that is simply astonishing in scale,” U.S. Attorney Dawn N. Ison said in a statement.
Smith’s scheme also involved obtaining a $5 million line of credit with Citizens Bank on the Conservancy’s behalf – a line of credit he was not in any way authorized to take out. Smith allegedly provided the bank with a document purporting to establish that he was empowered by the DRFC Board of Directors to obtain such credit lines. That document, according to the complaint, was false, and bore the forged signature of the Conservancy’s Corporation Secretary.
Smith’s alleged embezzlement scheme was uncovered after a May 14th tip was brought to the attention of federal authorities. U.S. Attorney Ison praised the close cooperation and collaboration of state and local law enforcement partners who brought the matter to her office’s attention.
The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Michigan. If convicted, Smith faces a maximum of 30 years in prison on each count of Bank Fraud and Wire Fraud.
The Detroit Riverfront Conservancy, a 501(c)(3) organization, was formed with the mission of developing access to the Detroit International Riverfront from the Ambassador Bridge to Belle Isle. The organization is funded by a combination of public and private funds.
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Key Facts
- State: Michigan
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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