Dawn N. Ison, U.S. Attorney | Department Of Justice Eastern District Of Michigan
Former Detroit Riverfront Conservancy Chief Financial Officer William A. Smith has been sentenced to 19 years in prison for embezzling over $40 million during his tenure at the organization between 2011 and May 2024. Acting United States Attorney Julie Beck announced his sentence, which includes three years of supervised release and requires Smith to pay approximately $44.3 million in restitution. Smith must also forfeit his ill-gotten gains linked to the scheme.
Beck's announcement was supported by Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Field Office, and Charles Miller, Special Agent in Charge of the IRS-Criminal Investigations Detroit Field Office.
The court heard that Smith, 52, had pleaded guilty to wire fraud and money laundering in November 2024, accepting responsibility for his criminal actions before United States District Judge Susan K. DeClercq. "William Smith stole an astonishing amount of money from an important community institution, and he spent that money to finance an extravagant lifestyle," stated Beck. She emphasized the severity of the crime by adding, "Every dollar that Smith spent on luxury goods for himself is a dollar that the Conservancy could not spend beautifying and improving our city's riverfront."
FBI Special Agent Gibson remarked on the breach of trust, saying, "Today’s sentencing of William Smith marks the conclusion of a scheme, spanning more than a decade, deeply violating the trust of his employer and the community." He credited the outcome to the FBI Detroit’s Complex Financial Crimes Squad and the efforts of the U.S. Attorney’s Office of the Eastern District of Michigan.
Charles Miller from IRS Criminal Investigation highlighted Smith's betrayal of his responsibilities, noting that Smith misappropriated over $40 million intended for the development of the Detroit Riverfront. "IRS Criminal Investigation is proud to work with the US Attorney’s Office of Eastern Michigan and our law enforcement partners to ensure that justice is served," Miller stated.
Court documents revealed Smith's methods, including unauthorized transfers of Conservancy funds to a personal bank account titled "The Joseph Group, Inc.," owned by Smith. Approximately $24.4 million was moved from Conservancy funds to this account. Additionally, Smith used around $14.9 million to settle personal expenses through an American Express account linked to another enterprise he controlled, "William Smith & Associates LLC."
Smith also purchased cashier's checks with Conservancy funds without authorization and falsified bank statements to conceal his actions. He further took out an unauthorized line of credit in the Conservancy's name to infuse funds back into its accounts, ultimately covering up his embezzlement.
Throughout his fraudulent activities, Smith financed a luxurious lifestyle, spending vast amounts on personal luxuries like basketball tickets, cruises, private jets, designer clothing, and jewelry. The case was prosecuted by Assistant United States Attorneys John K. Neal and Robert A. Moran, with asset forfeiture handled by K. Craig Welkener and Jessica Nathan. The FBI and the IRS-Criminal Investigations Division conducted the investigation.
