Smith pleaded guilty to wire fraud and money laundering charges.
William Smith, a former CFO at the Detroit Riverfront Conservancy, pleaded guilty on Nov. 15 to a battery of financial crimes including the theft of $44 million from the organization which resulted in delays to a major riverfront project.
According to Fortune, the 52-year-old Smith was arrested in June and investigators alleged that he routinely used money from the organization’s coffers for travel, hotels, limousine, clothing and jewelry.
Smith pleaded guilty to wire fraud and money laundering charges in his appearance in court on Nov. 15, and acknowledged that the loss of money for the non-profit was at least $44 million.
According to Cheyvoryea Gibson, Detroit’s leader of the FBI, “Mr. Smith’s deceitful actions, which spanned for more than a decade, not only broke the trust of his employer but the entire community.”
Conservancy CEO Ryan Sullivan’s statement to the Detroit Free Press, noted that Smith’s actions have led the organization to implement reforms designed to prevent similar situations in the future. Sullivan emphasized that these measures aim to reinforce accountability and ensure greater oversight within the organization.
“We are pleased to see Will Smith begin to be held accountable for his disgraceful actions. We thank the U.S. Attorney’s Office and the Federal Bureau of Investigation for a remarkably speedy and thorough investigation leading to this plea agreement. This is an important step in the process, but our work does not end here,” The statement read.
The embezzlement scheme involved Smith wiring $24 million in funds from the organization to one of his companies and another $15 million to American Express to pay off credit cards held by himself and his family, according to federal prosecutors.
Smith has also had $39 million of his assets frozen in the federal case, except for up to $3,421 a month for a rental property Smith maintains. A temporary restraining order allows for the controlled sale of Smith’s property with proceeds preserved for the benefit of Smith’s victims and subject to court approval.
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Source: Black Enterprise
