The former CFO of a Detroit nonprofit has pleaded guilty to financial crimes

November 17, 2024

Smith pleaded guilty to fraud and money laundering.

William Smith, the former chief financial officer of the Detroit Riverfront Conservancy, pleaded guilty Nov. 15 to a series of financial crimes, including stealing $44 million from the organization that caused delays in a major riverfront project.

According to Fortune52-year-old Smith was arrested in June, and investigators alleged that he regularly used money from the organization’s coffers for travel, hotels, limousines, clothing and jewelry.

Smith pleaded guilty to wire fraud and money laundering charges at his Nov. 15 court appearance and admitted the loss of at least $44 million to the nonprofit.

Smith could face more than 15 years in prison when he returns to court in March 2025 for sentencing.

According to Chavory Gibson, head of the Detroit FBI, “Mr. Smith’s deceitful actions, which continued for more than a decade, undermined the trust not only of his employer, but of the entire community.”

Statement by Conservancy CEO Ryan Sullivan for Detroit Free Pressnoted that Smith’s actions prompted the organization to implement reforms designed to prevent similar situations in the future. Sullivan emphasized that these measures aim to strengthen accountability and ensuring greater control within the organization.

“We are pleased to see that Will Smith is being held accountable for his shameful actions. We thank the US Attorney’s Office and the Federal Bureau of Investigation for their extremely swift and thorough investigation that led to this plea agreement. This is an important step in the process, but our work does not end there,” the statement said.

According to federal prosecutors, the embezzlement scheme involved transferring $24 million from the organization to one of its companies and another $15 million to American Express to pay off credit cards belonging to him and his family.

Smith’s fraudulent activities somehow went undetected until March 2024, when an internal review was launched and the findings of the investigation turned over to the Michigan State Police and then the FBI.

Smith also allegedly took out a $5 million line of credit in 2023 using documents that were allegedly forged to cover up the group’s cash flow problems. There is a separate civil forfeiture case and a local civil suit against Smith, both of which are currently pending.

The federal case also froze $39 million in Smith’s assets, except for $3,421 in rental properties maintained by Smith. The temporary restraining order allows for a controlled sale of Smith’s property with the proceeds to benefit Smith’s victims and subject to court approval.