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Former Detroit Riverfront Conservancy CFO federally charged, accused of stealing millions

Embezzlement scheme reportedly ran from 2012 to 2024

DETROIT – The former Chief Financial Officer for the Detroit Riverfront Conservancy has been federally charged with bank and wire fraud after reportedly stealing millions from the nonprofit.

The charges are in connection with what authorities believe is a years-long scheme to embezzle Conservancy funds.

William Smith, 51, was formally fired from the nonprofit on Friday, May 31, amid an FBI investigation. More than $40 million was reportedly embezzled and spent on airline tickets, hotels, limos, clothing, jewelry, luxury goods and more.

He was released after posting $10,000 bond, although with more restrictions than usual -- including a GPS tether. His family picked him up from the courthouse after his arraignment Wednesday, June 5.

According to the criminal complaint, Smith had used Conservancy funds to pay for his family’s credit card bills and diverted nonprofit funds to The Joseph Group, a company he controlled.

Authorities said that neither of Smith’s actions were authorized or approved by the Board and that The Joseph Group was not an approved vendor and provided no services to the nonprofit. As CFO, Smith had sole access and control over the Conservancy’s bank accounts and was the only person with the password for its business checking account online portal.

The criminal complaint alleges the Conservancy paid $14.9 million toward an American Express account Smith reportedly used for personal expenses and $24.4 million to The Joseph Group.

Smith reportedly doctored bank statements provided to the Conservancy’s accountant, which resulted in falsified financial information being entered into the nonprofit’s accounting software, which hid the fraud.

After he reportedly exhausted the nonprofit’s cash holdings, he obtained a $5 million line of credit with Citizens Bank to cover cash shortfalls. When asked for verification, Smith reportedly gave the bank a fake document that said he was authorized to do so. Authorities said the document included the forged signature of the nonprofit’s secretary.

The federal investigation into Smith began in May after an independent audit of management reports and financial statements were provided to the Conservancy’s Board of Directors.

The scheme reportedly had been going on since late 2012 and continued until his suspension in May. He was fired shortly after.

Quattro Financial took over the Conservancy’s day-to-day finance and accounting services once the suspected embezzlement scheme came to light.

The Board said they will take every effort to recover the money from Smith. A litigation committee has been formed to find out if he worked alone or if others were involved.

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.

A statement from Matt Cullen, the Conservancy’s Board Chairman, can be read below.

“We commend the FBI and U.S. Attorney’s Office for the quick and thorough start to their investigation, which led today to the arrest of William Smith. We will continue to cooperate with law enforcement to ensure justice is brought against this nefarious scheme to subvert layers of financial controls and embezzle resources from one of the greatest waterfront projects in the United States.”

Matt Cullen, Chairman of the Board, Detroit Riverfront Conservancy

About the Authors
Dane Kelly headshot

Dane Kelly is an Oreo enthusiast and producer who has spent the last seven years covering Michigan news and stories.

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