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Fired CFO allegedly embezzled $40M from conservancy
William Smith embezzled nearly $40 million over a 12-year period from 2012 to 2024, the U.S. Attorney in the Eastern District of Michigan alleged. He appeared in federal court Wednesday afternoon and was given a $10,000 personal bond with standard conditions including no travel outside the Eastern District.
DETROIT (FOX 2) - Prosecutors have re-filed charges in the massive financial fraud case involving the Detroit Riverfront Conservancy and its ex-chief financial officer who is accused of stealing millions of dollars from the nonprofit for years.
U.S. Attorneys presented the charges in federal court in the Eastern District of Michigan on Tuesday, alleging William Smith used his position within the firm to steal tens of millions of dollars over 12 years. He's charged with money laundering and wire fraud.
The new filing was submitted as a criminal information charge, which means prosecutors did not take the case to a grand jury before sending it to a judge. In many instances, an information charge means a plea deal is in the works.
According to prosecutors, Smith is expected to be arraigned in federal court around 1 p.m. Thursday.
The scope of the fraud is massive and one of the biggest in Michigan history.
Smith used his control over the conservancy's two banks to wire millions of dollars to limited liability companies he controlled, before later wiring the money to his own personal ventures, including other businesses and residential properties.
He also spent the money on lavish furniture, clothing, lawn care, and entertainment.
None of the expenditures that Smith authorized were approved by the conservancy and were done without his knowledge.
In addition to restitution, Smith's many properties will be forfeited to the government as well.
Civil Suit: Detroit Riverfront Conservancy's ex-CFO enriched family members during embezzlement scheme
William Smith, the former CFO of the Detroit Riverfront Conservancy, is accused of embezzling $40 million from the organization.