A federal judge has barred former Detroit Riverfront Conservancy Chief Financial Officer William Smith from transferring or selling any assets.
The temporary restraining order, requested by federal prosecutors, was granted Monday by Judge Linda Parker.
Smith is accused of stealing $39.3 million from the Conservancy over a 12-year period. He’s facing wire and bank fraud charges.
In the government’s complaint, they allege Smith is engaging in an ongoing effort to transfer assets that would otherwise be available to repay his victims.
Those assets include a home in Atlanta, Georgia, on the market for $799,900, a two-bed, two-bath condo in Mexico for sale for $385,000, and a 36-foot yacht.
“Given that Smith obtained $39.3 million in fraud proceeds over 12 years while making less than $3 million total in that timeframe from his Conservancy salary, and his pattern of transferring criminal proceeds to LLCs in his control or spending them on his own pursuits, the United States alleges that Smith obtained or improved the great majority of his numerous assets with fraud proceeds. This is particularly obvious in the case of the Georgia home, the Mexico condo, and the Cruisers 35 Express yacht, in that these are high-value luxury assets purchased during the fraud period,” the complaint states.
The federal investigation into Smith began last month after an independent audit of management reports and financial statements were provided to the Conservancy’s Board of Directors.
Smith was first suspended and then fired from the nonprofit that focuses on developing the Riverfront.
Matt Cullen, Board Chair of the Detroit Riverfront Conservancy said in a statement: “We are thankful for the swift action taken by the government and law enforcement to retrieve the money stolen from the Conservancy. This is a crucial step in ensuring that no one will get away with stealing from the Conservancy and the people of Detroit. We are grateful to our philanthropic partners who continue to support our vision, and will continue to collaborate with law enforcement to ensure justice, recover the money stolen from the Conservancy, and finish our mission of completing and sustaining the number one riverfront in the U.S.”
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