Detroit Riverfront Conservancy's ex-CFO pleads guilty to wire fraud and money laundering

Ex-Conservancy CFO pleads guilty to fraud

Will Smith pleaded guilty in federal court Friday to one count of money laundering and one count of wire fraud. He agreed to pay more than $44 million in restitution.

DETROIT (FOX 2) - The 52-year-old former chief financial officer of the Detroit Riverfront Conservancy pleaded guilty to federal crimes of wire fraud and money laundering on Friday.

Will Smith was behind the theft of more than $40 million from the nonprofit during a years-long scheme in which he transferred money from the conservancy into bank accounts he controlled, while attempting to conceal the moves, while claiming to have authorization to do so.

As part of his guilty plea, Smith has agreed to pay at least $44.3 million in restitution as payment for the massive amount of fraud.

Since initial reporting of fraud at the conservancy this spring, the embezzlement case against Smith has proceeded over the summer and fall in federal court. During that time, the extent of Smith's crimes became known with filings that show investments in businesses, real estate, and contractor work.

Smith admitted to siphoning funds from the conservancy between November 2012 and May 2024.

His scheme included diverting funds from the organization's two bank accounts to a private account called "The Joseph Group, Inc.," which Smith controlled by himself. The firm was not an approved vendor for the nonprofit.

Despite that, Smith moved nearly $25 million into the account over a nine-year period.

He also moved almost $15 million into an American Express account controlled by Smith, where he paid off purchases made with several credit cards connected to the bank.

He bought furniture, designer clothing, handbags, lawn care services, airline tickets, and more.

Throughout the scheme, Smith falsified bank statements that he gave to the conservancy's bookkeeper by altering and deleting unauthorized transfers. He also forged signatures in an attempt to secure a $5 million line of credit that he hoped to move into the conservancy's bank accounts to over up his embezzlement.

"Smith not only betrayed the Conservancy’s trust, but he betrayed the trust of the whole community, all so that he could enjoy the trappings of wealth and comfort," U.S. Attorney Dawn Ison said in a statement. "I remain shocked at the scale of the fraud and the harm it has caused, and today’s guilty plea is an important step towards holding Mr. Smith accountable for his outrageous conduct."