Here Are the Steps This Detroit Nonprofit Exec Allegedly Took to Steal $40 Million
Former Detroit Riverfront Conservancy CFO William Smith is under the thumb of federal prosecutors who say he used his nonprofit to smuggle millions (and we mean millions) of dollars. We don't know what's more shocking — the amount he allegedly took, the amount of time it took for authorities to catch him or how he got away with it for so long.
Now that he's about to be sentenced for his crimes, let's take a look at all the tea.
Federal prosecutors accuse Smith, 52, of using his nonprofit to embezzle over $40 million dollars since 2003, per court documents. They say he finessed the organization's bank account when funds were low by taking out a line of credit on the org's behalf. The Feds say he claimed to get permission from the board to proceed with said action.
However, prosecutors said he did not have permission nor did he have valid documents to provide to the bank. Instead, they claim Smith forged the documents he provided.
From there, Smith is accused of taking the money from that credit line and funneling it to the organization's bank account to cover up his embezzlement. To keep his movements on the low, prosecutors say he would conceal the source of the funds or what they were being used for.
For example, he once funneled over $98,000 from the organization's bank to Comerica Bank to The Joseph Group's account at Bank of America. He then did another complex transfer to TBE Food Group's account from which he funneled funds directly to his personal bank account.
You must be wondering what he spent the money on. Chile, everything. According to prosecutors:
He bought a home in Texas for an unspecified amount.
He chartered a private yacht for a weeklong Mediterranean cruise for $100,000.
He bought over $500,000 in Gucci and Louis Vuitton merchandise.
He dropped $54,000 at a jewelry store.
He spent over $500,000 for Detroit Pistons Games. Floor seats, of course.
He dropped $45,000 on a high-end experience at a Detroit Lions game in Los Angeles featuring a private suite, access to the stadium's restaurants and a stay at a boutique hotel.
He booked a trip to Las Vegas, staying at the Cromwell Hotel and spent $8,000 at Drais Rooftop, $5,000 at Drais Beach Club and $94,000 on a private jet.
He booked a slew of airline tickets totaling over $94,000.
He put down nearly $60,000 for a wedding venue.
Oh! And he allegedly paid off his American Express bills which totaled up to $14 million from November 2012 to March 2024, prosecutors said.
During a board meeting in March 2024, Smith was confronted about the organization's financial status, per ClickonDetroit. Suddenly, a month later, he took a leave of absence for a physical illness. While he was gone, the report says the board hired a third-party to investigate the organization's finances. By May, Smith was suspended and reported to the police for fraud.
On June 4, 2024, Smith was charged with wire fraud and money laundering, the report says. In November, he pleaded guilty to one count of each. He's set to be sentenced on April 24. He faces a maximum of 20 years in prison. However, prosecutors requested 18 years.
Ahead of the hearing, Smith filed an apology saying he was 'ashamed' and 'extremely remorseful' about his scheme, per Axios Detroit.
For the latest news, Facebook, Twitter and Instagram.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Woman and family members kill her husband in self-defense at Buckhead apartment complex, police say
Atlanta police are investigating a fight between a husband and wife that turned deadly in Buckhead. At about 11:30 p.m. Wednesday, police responded to the Cortland Peachtree Battle apartment complex at 2420 Peachtree Road in Atlanta to reports of shots fired. When they arrived, they found a man dead in a hallway. Atlanta Police Homicide Commander Andrew Smith said a man in his mid-30s entered the apartment building, approached the apartment of his wife, also in her mid-30s, and fired two shots. Smith said the man and woman were in the process of getting a divorce. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks] After the man began firing the shots, the woman and two of her family members attacked the man in self-defense and killed him. Police aren't sure at this time how he was able to enter the building and have not revealed how the woman and her family members killed the man. Investigators are collecting evidence and interviewing witnesses. It is unclear if charges will be filed. Police urge anyone with information about this shooting to call Atlanta Crime Stoppers at 404-577-TIPS (8477). Tipsters can remain anonymous. TRENDING STORIES: Manhunt underway for GA man accused of ramming truck into patrol vehicle, leaving deputy injured PHOTOS: These people vanished in Georgia. Now, the GBI is searching for them 'Senseless': Brothers, ages 13 and 14, accused of Clayton party shooting, posting it to social media [SIGN UP: WSB-TV Daily Headlines Newsletter]
Yahoo
6 hours ago
- Yahoo
Lawsuit filed in fatal police shooting of man cuffed in Albuquerque officer's vehicle
Jun. 11—The fatal shooting by Albuquerque police of Matthew "Solo" Garcia while he was handcuffed in the backseat of an officer's SUV in October prompted a tense protest outside the Central Avenue motel in the hours after the killing. Garcia's family on June 2 filed a lawsuit alleging that the Albuquerque Police Department and city officials failed to follow the law and their own policies throughout the encounter on Oct. 18, 2024. "We want our officers and our department — specifically APD — to comply with our constitution," said Taylor Smith, an attorney who filed the suit. "Had that been the case from the outset, I think we would have a drastically different situation, and probably not a wrongful death lawsuit," he said. The shooting occurred after APD and city officials arrived at the Tewa Lodge to enter apartments and evict tenants, the suit alleges. The action violated the state's Uniform Owner-Resident Relations Act and city policies that regulate tenant evictions, it alleges. The lawsuit contends that officers had no right to enter Garcia's room at the Tewa Lodge on Central, just east of San Mateo, without a search warrant or to detain him without cause. It also alleges officers had ample time to search Garcia for a weapon after they cuffed him and placed him in a police vehicle. The 37-page lawsuit, filed last week in 2nd Judicial District Court, seeks undisclosed compensatory and punitive damages and costs. It names the city, APD Chief Harold Medina and three officers and others as defendants. Spokespersons for the city and APD declined Wednesday to respond to the lawsuit. "On APD's side, we will be prepared to respond to the allegations in court," APD spokesman Gilbert Gallegos said in a statement. Garcia had a loaded handgun on his person at the time he was placed into the police SUV. APD officials shared lapel video showing officers Precious Cadena and Zachary Earles firing 11 bullets through the open doors of the vehicle as a third officer wrested the gun from Garcia. "Another important aspect of this case is the fact that the officers were able to get the firearm from Mr. Garcia before they began to shoot him," Smith said. "And there was no communication between the officers when they removed the firearm." APD Chief Medina acknowledged at a news conference that Garcia was placed into the SUV without a pat-down search. An officer had put on gloves to perform a search when Garcia began banging his head against the vehicle, lapel video showed. Officers placed Garcia in the car "in an attempt to calm the situation down," Medina said. The lawsuit alleges that police had ample time to complete the pat-down search in the 40 minutes after Garcia was handcuffed but failed to do so. "It's a good amount of time in which they could have (searched Garcia) while he was being cooperative with officers," Smith said. The lawsuit also contends that the code enforcement operation police and city officials conducted violated city laws and policies and Garcia's constitutional rights. City officials intended to evict all the residents of the Tewa Lodge when they entered the property and began removing tenants from the units without warrants, it alleges. Throughout the interaction, officers "made clear that Mr. Garcia was not free to terminate the encounter and was not free to leave constituting a de facto arrest without reasonable suspicion or probable cause," the suit alleges. Smith said residents in hotel rooms have constitutional protections against unreasonable search and seizure. "You can't just summarily evict somebody because you believe there may be drugs on the property," he said. "You still have to go through the criminal process."
Yahoo
6 hours ago
- Yahoo
Lawsuit filed in fatal police shooting of man cuffed in Albuquerque officer's vehicle
Jun. 11—The fatal shooting by Albuquerque police of Matthew "Solo" Garcia while he was handcuffed in the backseat of an officer's SUV in October prompted a tense protest outside the Central Avenue motel in the hours after the killing. Garcia's family on June 2 filed a lawsuit alleging that the Albuquerque Police Department and city officials failed to follow the law and their own policies throughout the encounter on Oct. 18, 2024. "We want our officers and our department — specifically APD — to comply with our constitution," said Taylor Smith, an attorney who filed the suit. "Had that been the case from the outset, I think we would have a drastically different situation, and probably not a wrongful death lawsuit," he said. The shooting occurred after APD and city officials arrived at the Tewa Lodge to enter apartments and evict tenants, the suit alleges. The action violated the state's Uniform Owner-Resident Relations Act and city policies that regulate tenant evictions, it alleges. The lawsuit contends that officers had no right to enter Garcia's room at the Tewa Lodge on Central, just east of San Mateo, without a search warrant or to detain him without cause. It also alleges officers had ample time to search Garcia for a weapon after they cuffed him and placed him in a police vehicle. The 37-page lawsuit, filed last week in 2nd Judicial District Court, seeks undisclosed compensatory and punitive damages and costs. It names the city, APD Chief Harold Medina and three officers and others as defendants. Spokespersons for the city and APD declined Wednesday to respond to the lawsuit. "On APD's side, we will be prepared to respond to the allegations in court," APD spokesman Gilbert Gallegos said in a statement. Garcia had a loaded handgun on his person at the time he was placed into the police SUV. APD officials shared lapel video showing officers Precious Cadena and Zachary Earles firing 11 bullets through the open doors of the vehicle as a third officer wrested the gun from Garcia. "Another important aspect of this case is the fact that the officers were able to get the firearm from Mr. Garcia before they began to shoot him," Smith said. "And there was no communication between the officers when they removed the firearm." APD Chief Medina acknowledged at a news conference that Garcia was placed into the SUV without a pat-down search. An officer had put on gloves to perform a search when Garcia began banging his head against the vehicle, lapel video showed. Officers placed Garcia in the car "in an attempt to calm the situation down," Medina said. The lawsuit alleges that police had ample time to complete the pat-down search in the 40 minutes after Garcia was handcuffed but failed to do so. "It's a good amount of time in which they could have (searched Garcia) while he was being cooperative with officers," Smith said. The lawsuit also contends that the code enforcement operation police and city officials conducted violated city laws and policies and Garcia's constitutional rights. City officials intended to evict all the residents of the Tewa Lodge when they entered the property and began removing tenants from the units without warrants, it alleges. Throughout the interaction, officers "made clear that Mr. Garcia was not free to terminate the encounter and was not free to leave constituting a de facto arrest without reasonable suspicion or probable cause," the suit alleges. Smith said residents in hotel rooms have constitutional protections against unreasonable search and seizure. "You can't just summarily evict somebody because you believe there may be drugs on the property," he said. "You still have to go through the criminal process."
