William A. Smith, the former chief financial officer of the Detroit Riverfront Conservancy, was sentenced to 19 years in federal prison on April 24, 2025, after admitting he siphoned more than $44 million that was supposed to pay for riverfront projects. Prosecutors say the long-running scam left the nonprofit scrambling to cover construction costs, vendor invoices, and even employee benefits.
In a press release, the U.S. Attorney’s Office for the Eastern District of Michigan said U.S. District Judge Susan K. DeClercq also ordered roughly $48 million in restitution and three years of supervised release. Smith had pleaded guilty on Nov. 15, 2024, to wire fraud and money laundering. According to the office, FBI and IRS-Criminal Investigation agents uncovered transfers that stretched from 2012 through May 2024.
How prosecutors say he did it
Court filings describe three main tactics. Smith diverted Conservancy money to an entity he controlled, used company-linked credit accounts to cover personal expenses, and bought cashier’s checks and similar instruments to help hide the theft. As reported by BridgeDetroit, about $24.4 million was routed to a Smith-controlled account called The Joseph Group, and prosecutors say around $14.9 million was used to pay an American Express account he controlled.
Lavish purchases prosecutors itemized
In sentencing memos, prosecutors laid out a shopping list of luxury spending they say came straight from Conservancy funds. Local reporting cites a two-day Las Vegas trip that included a private-jet charter costing $94,023, a weeklong Mediterranean yacht charter for about $100,016, and a $63,452 Maserati lease for a romantic partner. The filings also describe hundreds of thousands of dollars spent on courtside Detroit Pistons seats, designer goods, and high-end restaurant tabs, according to ClickOnDetroit.
Coverups and the civil fight to recover money
To keep the scheme out of sight, prosecutors say Smith falsified bank statements, moved money through related entities, and even used forged documents to secure a $5 million line of credit in the Conservancy’s name. The U.S. Attorney’s Office said investigators uncovered the forgeries during the probe. The Conservancy has also gone to civil court in an effort to claw back funds from Smith and people in his orbit, as reported in coverage of Hoodline.
Charges, plea and appeals
Smith pleaded guilty on Nov. 15, 2024, to one count of wire fraud and one count of money laundering, according to the AP. Under the plea deal, he agreed to pay at least $44.3 million in restitution, and the court later set the figure at roughly $48 million. Smith began serving his sentence in August 2025 at the federal prison in Milan after losing efforts to delay reporting, and his lawyers filed an appeal in November 2025 that prosecutors have asked the Sixth Circuit to dismiss, according to Axios.
What this means for the riverfront
The scandal slowed projects along the riverfront and forced donors and foundations to step in with emergency cash while the Conservancy reworked its oversight, auditing, and board rules. As reported by CFO Dive, new controls include rotating auditors, a whistleblower hotline, and term limits for board members. The case has been compiled into a detailed timeline and photo gallery by The Detroit News, and earlier coverage highlighted donors’ $35 million rescue package that helped keep construction moving in DRC receives $35M lifeline.
