The Detroit Riverfront Conservancy, a nonprofit heralded for its role in transforming the city's waterfront, has fired its CFO, William Smith, amid a budding scandal involving a staggering $40 million that may have gone missing. According to The Detroit News, the conservancy’s board also accepted CEO Mark Wallace’s resignation following these revelations, which have prompted an FBI investigation.
Quickly responding, the conservancy has appointed Ryan Sullivan as interim CEO, who is expected to thankfully take charge of a comprehensive review of the nonprofit’s financial and operational policies. Smith, placed on leave earlier this month after discrepancies in financial statements roused concern, has yet to be criminally charged despite the allegations. Investigations “revealed that Mr. Smith has embezzled significant sums of money” from the conservancy, which were converted to his own personal use. Mr. Smith’s unlawful conduct spans several years," former U.S. Attorney Matthew Schneider said in a termination letter, as quoted by BridgeDetroit.
In the wake of this turmoil, Karen Slaughter-DuPerry, a veteran conservancy executive, will take charge of ongoing construction activities, including the Ralph C. Wilson Centennial Park set to open in 2025. The nonprofit's oversight role, which includes development such as the Dequindre Cut and Southwest Greenway, is pivotal to the city's infrastructure and community identity, having drawn 3 million annual visitors and accolades as America's best riverfront in recent years.
Financial consulting firm Quattro Financial Services has been tasked with overseeing the conservancy's finances moving forward. The move seems to reinforce the organization’s financial integrity - a measure deemed urgently necessary after the allegations against Smith surfaced. In light of these developments, prominent backers including the Ralph C. Wilson Jr. Foundation and The Kresge Foundation have reaffirmed their support, pledging additional funds to sustain the conservancy's initiatives. "This redoubles our commitment to the project,” Kresge's President and CEO, Rip Rapson, was quoted in the BridgeDetroit report.
