William Smith, the ex-chief financial officer of the Detroit Riverfront Conservancy, who is facing charges of wire fraud and money laundering for allegedly embezzling nearly $40 million from the non-profit organization dedicated to the enhancement of the Detroit Riverfront, faced new allegations in court this week. During the court proceedings, Smith, who had served as CFO since 2011, was accused of embezzling an additional $15 million from the conservancy, standing mute as a not-guilty plea was entered on his behalf and waiving his right to a grand jury investigation, as reported by WWJ Newsradio.
The seriousness of Smith's case was highlighted as he made a court appearance where U.S. Attorney Robert Moran noted that the loss amounts exceed $40 million, with Magistrate Judge Elizabeth Stafford indicating that if convicted, Smith could be sentenced up to 20 years in prison and may have to pay significant fines; Smith was arraigned promptly and a plea hearing was scheduled for Oct. 21 according to the Detroit Free Press.
Federal prosecutors allege that Smith spent the embezzled funds on various personal luxuries including jewelry, airplane tickets, and limousine services; additionally, they claim he diverted money to The Joseph Group, a company he had control over that was not an approved vendor nor provided services to the conservancy, reported WWJ Newsradio.
The FOX 2 Detroit described the scale of the fraud as monumental, one of the biggest financial frauds in Michigan's history where Smith managed the conservancy's two bank accounts and siphoned off the millions to LLCs he managed and on expenditures that included lavish furniture clothing, and other entertainment needs, none of which were approved by the conservancy board the same outlet reported.
According to the Detroit Free Press, Ryan Sullivan, the conservancy's interim CEO, has expressed support for the U.S. Attorney's Office's efforts to hold Smith accountable, stating, "The Conservancy welcomes any efforts by the U.S. Attorney's Office to hold Smith accountable for his crimes. We appreciate their continued vigilance and speed to prosecuting Smith."
