DETROIT, MI – A former financial officer of a prominent organization that revitalized Detroit’s riverfront was charged Wednesday with embezzling tens of millions of dollars. William Smith, who managed the finances at the Detroit Riverfront Conservancy, allegedly diverted funds to cover personal expenses, including travel, hotels, limousines, household goods, clothing, and jewelry, according to a federal criminal complaint.
U.S. Attorney Dawn Ison described the fraud as “astonishing in scale,” estimating the theft at $40 million. Smith, who served as the chief financial officer from 2011 until his dismissal in May, faces charges of bank and wire fraud. He appeared in court in handcuffs but was later released on bond.
Smith’s defense attorney, Gerald Evelyn, has not responded to requests for comment. The scandal first came to light on May 14 when the Riverfront Conservancy announced Smith was being placed on leave. He was officially terminated on Friday.
The Detroit Riverfront Conservancy’s mission is to transform the city’s riverfront into a vibrant public space with plazas, pavilions, and green areas. Over the years, philanthropists and foundations, including the Ralph C. Wilson Jr. Foundation, have invested millions into these projects. Wilson, a former owner of the NFL’s Buffalo Bills, lived in suburban Detroit until his death in 2014.
The allegations have shocked the 44-member board of directors, which includes major business leaders and public officials. “We each feel a sense of responsibility to overcome this horrific act,” the board stated last week.
The Detroit RiverWalk, a popular attraction developed by the Conservancy, has become a symbol of the city’s resurgence. The news of Smith’s alleged embezzlement casts a shadow over the organization’s achievements and raises questions about oversight and financial controls.