Former Detroit Riverfront Conservancy CFO who stole $40M sentenced to 19 years in prison

CBS News

24-04-2025

William Smith, the former CFO of the Detroit Riverfront Conservancy, who pleaded guilty in a $40 million embezzlement case, was sentenced Thursday to 19 years in federal prison.
Smith, 52, is also responsible for $48 million in restitution and will be on supervised release for three years once he serves out his sentence.
Judge Susan DeClercq of the United States District Court for the Eastern District of Michigan said what Smith did is devastating to the conservancy and people of Detroit, and people will feel the ripple effects of this for years to come.
DeClercq noted the loss the city has gone through for decades and said Smith is adding yet another stain to a city working to fight its way back.
Detroit was once a city with a reputation in disarray, and DeClercq added she does not want the city to even remotely look back in that direction. She said Smith's actions are a brand of shame for all of Detroit.
Smith pleaded guilty in November 2024 to one count of wire fraud and one count of money laundering. As part of his plea agreement, he agreed to pay at least $44.3 million in restitution. Smith served as the Conservancy's CFO from 2011 until he was fired in May amid an FBI investigation.
Federal prosecutors previously said Smith used the money "to live a deeply immoderate lifestyle," including purchasing real estate, clothes, jewelry, and a 35-foot boat and leasing a $200,000 Mercedes-Benz. Court records showed that Smith wire-transferred some of the money into multiple accounts he owned.
The money funded multiple trips, including a yacht for a Mediterranean cruise and a private jet to travel to Las Vegas, according to prosecutors. Smith also leased a Maserati for a woman he was romantically involved with and sent her $3.7 million. Additionally, he attended a Detroit Lions game at the Los Angeles Rams' SoFi Stadium, renting a private suite for $29,000, according to court documents.
Before Thursday's sentencing, Smith's defense team submitted a sentencing memorandum last week asking that the court impose a "fair sentence and a just sentence, and not one driven by sensationalism and other improper influences." The new filing came a week after federal prosecutors called for an 18-year sentence.
During sentencing, Smith's defense team argued that Smith has no prior record, has been a positive role model in the community and he has lost his support system due to scrutiny. They added that Smith is remorseful and apologetic and argued against enhancing his sentencing due to his race.
Smith said he takes full responsibility for his actions, including stealing from an organization that was made to serve the community of Detroit, and recognizes he will live with the weight of his decision for the rest of his life.
Federal prosecutors say Smith committed one of the most serious economic crimes in this jurisdiction. Prosecutors noted this offense went on for more than 11 years and was not a one-time mistake, and there should be no deviation from the sentencing guidelines.
Smith will continue out on bond until he self-reports to prison.