DETROIT – The Detroit Riverfront Conservancy has formally fired Chief Financial Officer William Smith, who is currently the focus of an FBI investigation.
An audit reportedly revealed more than $40 million was unaccounted for.
Officials with the nonprofit said its Board directed its attorneys to explore all legal interests of the riverfront, “including a potential civil lawsuit against Smith.”
Smith was placed on leave in mid-May after an independent audit and investigation of management reports and financial statements were provided to the board. He is currently the focus of an FBI investigation initiated by the Detroit Riverfront Conservancy.
The nonprofit said Board Chair Matt Cullen ordered two investigations after noticing discrepancies in financial statements. The two investigations estimate the loss to the Detroit Riverfront Conservancy to be more than $40 million over several years.
The Board said they will take every effort to recover the money from Smith.
Evidence of a potential embezzlement scheme was turned over to Michigan State Police and a criminal investigation was requested. The investigation has since been taken over by the FBI, due to the nature and the complexity of the situation.
The two largest donors to the Conservancy said they support the board’s actions and have pledged renewed funding to maintain the nonprofit’s projects.
The nonprofit said they have recruited business leaders from outside the Conservancy to analyze their accounting, finances and operations systems in an effort to improve them.
The Board hired Ryan Sullivan as an interim CEO to replace Mark Wallace, who will take on a role as a transitional advisor. Sullivan will oversee the review of the organization’s financial and operations policies.