The former CFO of the Detroit Riverfront Conservancy accused of stealing millions of dollars is being sued by his former employer.
The lawsuit cites “emotional damage” inflicted upon the community that supports the Detroit Riverwalk due to the “elaborate scheme and cover-up.”
Related: $40M theft from Detroit Riverfront Conservancy won’t stop new park construction
Former Chief Financial Officer William Smith is accused of stealing $39.3 million from the Conservancy over a 12-year period. He’s facing wire and bank fraud charges.
Investigators said he spent the money on airline tickets, hotels, limos, clothing, jewelry, luxury goods, and more.
The lawyers who filed the civil lawsuit said Smith’s family is also at fault and claimed he gave his family copies of a credit card loaded with Conservancy money. The lawsuit alleges his mother Charlotte, wife Kimberly and sister Jennifer racked up $15 million in charges on credit cards given to them by Smith.
Former U.S. Attorney Matthew Schneider said the Conservancy did not know they were footing the bill because Smith reportedly took elaborate steps to cover his tracks by manipulating the money in the nonprofit’s accounts. He would then allegedly wire funds out of one of the accounts to his business and use that cash to pay his bills.
A friend of Smith’s -- Darrell Greer -- is also named in the lawsuit. Attorneys claim Smith confided in Greer before the theft went public and reportedly had Greer accept the transfer of a Detroit home.
Two companies owned by Smith and one owned by Greer are also in the lawsuit.
