DETROIT – William A. Smith, 51, the former Chief Financial Officer for the Detroit Riverfront Conservancy, was charged with Bank Fraud and Wire Fraud in a criminal complaint unsealed today in federal court, announced United States Attorney Dawn N. Ison. The charges stem from an alleged years-long scheme by Smith to embezzle Conservancy funds for personal use.
According to court documents, the Detroit Riverfront Conservancy (DRFC) is a 501(c)(3) organization dedicated to developing access to the Detroit International Riverfront. Smith served as CFO from 2011 until his recent firing.
The Complaint alleges that Smith began embezzling funds as early as November 2012, using two main methods. First, he is accused of using Conservancy funds to cover personal charges on an American Express account. Second, Smith allegedly diverted Conservancy funds to a company he controlled, "The Joseph Group," which was not an approved vendor and provided no services to the DRFC. Over the course of the scheme, Smith is alleged to have stolen nearly $40 million.
To conceal his actions, Smith is said to have falsified bank statements provided to the Conservancy’s accountant, which led to inaccurate financial records. Additionally, in 2023, Smith reportedly obtained a $5 million line of credit from Citizens Bank using a fraudulent document. This line of credit was unauthorized and further funded his embezzlement.
U.S. Attorney Ison emphasized the seriousness of the charges, noting the significant breach of trust and financial harm inflicted on the Conservancy. The case underscores the importance of robust oversight and accountability mechanisms.
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The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Robert A. Moran, with the FBI conducting the investigation.
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