DETROIT (WXYZ) — The former CFO of the Detroit Riverfront Conservancy is now facing 15 to 19 years in prison after pleading guilty to wire fraud and money laundering Friday.
William A. Smith, 52, was ousted from the nonprofit in May 2024 after investigators say he embezzled somewhere between $25 to $65 million. Attorneys in the case say Smith used the money to support a "lavish lifestyle."
"Ever since we learned of this case the scope and scale of it has been astonishing to not only the community but our office," said U.S. Attorney Dawn Ison."A large portion of it was just used to support a very lavish lifestyle: trips for his family on first-class airplanes, private planes, clothing, and other things all at the expense of people who were really working hard to beautify a riverfront that has been recognized as the best riverfront in America."
Smith entered a plea agreement with the federal government that will require him to pay back a minimum of $44.3 million in restitution. Ison says her office has already begun seizing assets. The U.S. attorney's office also put a restraining order in place to prevent Smith from trying to sell any assets. However, Ison says it's unclear how much of the embezzled funds will be able to be recouped as much of it was spent on personal/nonrefundable items.
"Honestly it's a big sense of relief. Clearly, this was expected but this has been a long time coming since this was first discovered and the case was handed over to the authorities back in May," said Detroit Riverfront Conservancy CEO Ryan Sullivan.
Sullivan says the impact Smith's actions have made on the nonprofit are still weighing heavily on the team.
"It’s indescribable. If you can imagine working with someone for a decade or more that was in your midst that was lying and deceiving everyone around you throughout that entire period of time," said Sullivan. "It’s immeasurable the impact this has had on the community but one thing I will say is we are strong. We are resilient. Our team is standing here today."
Smith's Attorney's declined to comment after the hearing on Friday. Smith is currently out on bond.
Detroiter Lisa Maria Murdock who often enjoys the riverfront almost daily says the case has been sad to watch.
"It was very disappointing because it just gives Detroit another bad name," said Murdock.
Lifelong Detroiter Kim Cunningham takes a walk along the riverfront every day.
"I love it. I love the fact that we put the money back into the city. I love that we did something for us so we’re able to enjoy the environment," said Cunningham.
She says she was also disappointed to see someone taking from the donors and taxpayers who wanted to do something good for the city of Detroit.
"I’m really disappointed because of the fact that I believe he’s from Detroit as well. Why would you take from the city when we’re trying to build up," said Cunningham.
Smith is due back in court for sentencing in March 2025. Although the U.S. Attorney's office has suggested a specific sentence, the amount of time Smith spends behind bars will ultimately be determined by the court.
Additionally, the Detroit Riverfront Conservancy is pursuing civil litigation against Smith.
The Detroit Riverfront Conservancy's full statement on Friday's hearing can be found below:
“We are pleased to see Will Smith begin to be held accountable for his disgraceful actions.
We thank the U.S. Attorney’s Office and the Federal Bureau of Investigation for a remarkably speedy and thorough investigation leading to this plea agreement. It requires Smith to identify his assets and cooperate fully with the government’s attempts to secure restitution of money stolen from the Conservancy.
This is an important step in the process, but our work does not end here. We will continue to pursue civil litigation in pursuit of the stolen money. We also will complete the review of our financial operations and announce a series of reforms that address lessons learned from this scandal. Finally, we will continue to work with our partners to ensure that our projects will be completed on schedule and our operations sustained into the future.
The victims in this case are the Conservancy, its generous donors, the People of the City of Detroit and the State of Michigan, and everyone who has enjoyed the international riverfront, consistently voted the greatest of its kind in the nation. Today’s actions are part of our deliberate, determined effort to secure the future of the Detroit Riverfront. We are coming out of this stronger.”
Ryan Sullivan
CEO Detroit Riverfront Conservancy
