Former Detroit Riverfront Conservancy CFO Charged with Bank and Wire Fraud
The former chief financial officer of the Detroit Riverfront Conservancy (DRFC) has been charged with bank fraud and wire fraud, according to a criminal complaint that was recently unsealed. William A. Smith, who served as the nonprofit’s CFO from 2011 until his termination in May, allegedly embezzled millions of dollars from the Conservancy for personal use.
The Detroit Riverfront Conservancy is a nonprofit organization dedicated to improving public access to the Detroit International Riverfront. It relies on a combination of public and private funds to operate. Smith, as CFO, played a significant role in managing the organization’s finances.
Prosecutors claim that between November 2012 and March 2024, Smith orchestrated an elaborate scheme to embezzle around $40 million from the Conservancy. He allegedly used Conservancy funds to pay for personal expenses on an American Express account and diverted funds to his own company, “The Joseph Group,” which had no association with the DRFC.
Smith’s unauthorized expenditures were not approved by the Conservancy’s board. Furthermore, he obtained a $5 million line of credit with Citizens Bank on behalf of the Conservancy without proper authorization. To secure the line of credit, he provided a forged document with a fake signature from the Conservancy’s Corporation Secretary.
In an attempt to cover up his fraudulent activities, Smith manipulated bank statements before submitting them to the Conservancy’s accountant. He allegedly used funds from the line of credit to further his embezzlement scheme.
U.S. Attorney Ison, upon announcing the criminal complaint against Smith, expressed astonishment at the scale of the fraud. He emphasized his commitment to pursuing individuals who misuse taxpayer and charitable funds for personal gain. Ison acknowledged the efforts of state and local law enforcement partners in bringing attention to the alleged embezzlement scheme.
Smith has been placed on leave and has not made any public statements. The FBI is currently investigating the case. The Epoch Times reached out to Smith’s attorney, Gerald Evelyn, for comment.
This shocking case highlights the importance of financial oversight and transparency within nonprofit organizations. It serves as a reminder that individuals in positions of trust can exploit their authority for personal gain. Nonprofits must implement robust checks and balances to prevent such incidents and ensure the responsible use of funds. By doing so, they can maintain the public’s trust and fulfill their mission of serving the community.
