Detroit Non-Profit Asks For Maximum Sentence For Its Former CFO

DETROIT — The Detroit Riverfront Conservancy asked a federal judge to sentence its former CFO to 20 years in prison after prosecutors said he stole more than $40 million from the non-profit during a years-long scheme.

William Smith, 51, of Novi, pleaded guilty to wire fraud and money laundering in November 2024 and is scheduled to be sentenced on Thursday. He has also agreed to pay at least $44.3 million in restitution.

The request for the maximum sentence comes after federal prosecutors asked for an 18-year prison sentence for the former CFO.

"Smith did not simply steal money from a non-profit; he stole from volunteers and used that money for excess, flamboyance, and greed," lawyer Matthew Schneider wrote on behalf of the Conservancy in a letter to U.S. District Judge Susan DeClercq.

Prosecutors said the scheme started as early as November 2012, just one year after Smith began serving as the chief financial officer of the organization.

The organization, which is funded by a combination of public and private funds, aims to help develop access to the Detroit International Riverfront from the Ambassador Bridge to Belle Isle.

Prosecutors said Smith stole the money in two distinct ways: First he used the organization's money to pay for charges that he and his family accrued on an American Express account, and diverted organizational funds to a company he controlled called "The Joseph Group."

The funds were not authorized or approved by the board, and Smith had no authority to use the funds to pay his own credit card bills, prosecutors said.

He used the money to buy airline tickets, hotels, limousines, household goods, lawn care, clothing and jewelry, prosecutors said.

Prosecutors said Smith doctored bank statements to try and cover up the scheme. The statements led to erroneous financial information being entered into the Riverfront Conservancy's books, which concealed the fraud, prosecutors said.

Moreover, in 2023, Smith obtained a $5 million line of credit with Citizens Bank on behalf of the Conservancy that he was not authorized to take out, prosecutors said.

To obtain the credit, Smith provided a false document to the bank, which then gave him the credit, which he used as part of his scheme, prosecutors said.

In March 2024, Conservancy leaders confronted Smith as concerns grew about the nonprofit’s financial condition. The FBI then launced an investigation and the group fired Smith in May 2024.

The Conservancy also included many victim impact statements from the group's volunteers, board members, donors and employees.

"This is not just my personal loss. It is a loss (for) the entire area. You have probably been made aware of the number of visitors to the Detroit Riverwalk has over the course of a year, and the number of individuals that take part in many programs the Conservancy puts on. I speak for them as well, of the hurt that Mr. Smith has inflicted on us," one volunteer wrote.

A board member said, "He has singlehandedly diminished Detroit’s and the Conservancy’s reputation. Just when Detroit is getting accolades as the No. 1 Riverwalk in the United States three years in a row, for the revitalization of the city, and for the NFL draft, Mr. Smith’s scandal has put us in a negative light."

Others expressed dismay at Smith and were worried about the damage done to the reputation of the Conservancy.

Amid the sentencing request, the group also revealed new plans for the riverwalk, which was USA Today recently picked as the nation's best for the third straight year.

The group said plans are in the works for a multi-sports complex and youth sports academy on an abandoned industrial site near Belle Isle and new public space on the riverfront near the Renaissance Center. Those new upgrades may include a sports and entertainment spot, similar to those in the O2 entertainment district in London, Navy Pier in Chicago and Piers in New York City.