The man who for many years managed the finances of the organization that transformed Detroit’s riverfront into a popular tourist attraction was indicted Wednesday on charges of embezzling tens of millions of dollars.
According to a criminal complaint unsealed in federal court, William Smith routinely used the money he received from the Detroit Riverfront Conservancy to pay for travel, hotels, limousines, household goods, clothing, jewelry and other credit card bills.
US Attorney Dawn Ison called the fraud “simply staggering in scope” and estimated the theft at $40 million.
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Smith, who served as the company’s chief financial officer from 2011 until he was fired in May, was charged with bank fraud and wire fraud. He was handcuffed and taken to court, then released on bail.
His lawyer, Gerald Evelyn, did not respond to a phone message seeking comment.
This file photo taken June 24, 2014, shows walkers and joggers along the Detroit Riverwalk in Detroit. The man who for years managed the finances of the organization that transformed Detroit’s riverfront into a popular tourist attraction was indicted Wednesday, June 5, 2024, on charges of embezzling tens of millions of dollars. According to a criminal complaint unsealed in federal court, William Smith routinely used funds from the Detroit Riverfront Conservancy to pay for travel, hotels, limousines, household goods, clothing, jewelry and other credit card purchases. Smith, who served as chief financial officer from 2011 until he was fired in May, was indicted on charges of bank fraud and wire fraud. (AP Photo/Carlos Osorio_File)
Smith has not spoken publicly since the scandal broke on May 14, when the Riverfront Conservancy announced it was placing him on administrative leave. He was fired on Friday.
The Riverfront Conservancy’s mission is to transform miles of shoreline along the Detroit River into a recreational destination with plazas, pavilions and green spaces.
Philanthropists and foundations have poured millions into the ongoing project, including the Ralph C. Wilson Jr. Foundation. Mr. Wilson, who died in 2014, lived in suburban Detroit and was the owner of the NFL’s Buffalo Bills.
The Riverfront Conservation Association’s 44-member board of directors, which includes key business leaders and public officials, is shocked by the allegations.
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“We each feel a responsibility to move beyond this horrific act,” the committee said last week.
