22-04-2025
Detroit Riverfront Conservancy requests maximum prison sentence for ex-CFO
The Detroit Riverfront Conservancy is requesting a judge issue a maximum 20-year prison sentence for its former CFO who was convicted in connection with stealing $44 million from the nonprofit, arguing his purported cooperation with investigators and a promise to pay restitution should afford him no leniency.
William Smith is to be sentenced Thursday following his guilty plea in November to wire fraud and money laundering. Prosecutors have recommended he serve 18 years, while Smith's lawyers are seeking a sentence of 12.5 to 15.5 years.
'Smith did not simply steal money from a non-profit; he stole from volunteers and used that money for excess, flamboyance, and greed,' conservancy lawyer Matthew Schneider – himself a former top federal prosecutor – wrote in a letter Monday to U.S. District Judge Susan DeClercq.
More: Feds seek 18-year prison term for ex-Detroit Riverfront CFO William Smith
More: 'Ashamed' and 'remorseful': Lawyers for ex-Detroit Riverfront CFO ask court for leniency
Smith began siphoning money from the nonprofit, which was tasked with renovating the Detroit riverfront, in 2012. That was shortly after his promotion from fiscal analyst to CFO. The theft continued into March 2024, when the nonprofit's leaders said they first noticed cash flow issues.
Prosecutors have detailed lavish spending by Smith including $3.7 million in wire transfers to a mistress, $500,000 in Pistons floor tickets, and nearly $200,000 to charter a private jet and yacht.
Schneider's letter to DeClercq details additional alleged spending that includes the laundering of $4.3 million to Smith's now shuttered night club, Duo Restaurant and Lounge, in Southfield. According to the letter, Smith used conservancy funds for restaurant supplies, work uniforms, and bulk liquor orders in the thousands of dollars.
Smith also donated to community causes and GoFundMe campaigns with conservancy money, the letter says. "In what can only be described as the ultimate act of hubris," he made one donation to the conservancy itself, contributing $10,000 to the 2017 Shimmer on the River gala via an American Express card whose balance he later paid with a wire transfer from the nonprofit. Smith even sent himself a thank you letter for the donation, Schneider said, 'presumably so he could claim his payment as a charitable donation on his tax filing.'
Funds for the nonprofit come from philanthropic, public and private sources.
In requesting a lighter penalty for Smith, defense attorneys have said he's remorseful and they highlighted his cooperation with investigators.
But Schneider rejects that characterization, alleging that when confronted about the missing money in March 2024, the then-CFO lied about his involvement for weeks – first to board chair Matt Cullen, then an outside consultant the nonprofit hired to investigate, and, finally, an 'extremely upset' major donor whose organization had given the conservancy millions.
By late April, Smith took a leave of absence and started transferring assets, prompting a judge to eventually freeze them.
Smith has agreed to pay at least $44.3 million in restitution, but prosecutors expect to recoup as little as $2 million from all of his seized assets, per a February court filing.
Schneider's letter also includes comments from about a dozen anonymous "victims" affiliated with the conservancy.
One, from an unnamed board member, says the actions of Smith, who is Black, will prevent other Black people from succeeding.
'I can only begin to tell you the negative impact that has resulted in the Black community,' the statement says. 'Mr. Smith's actions give those who want to find a reason not to provide equal opportunity an excuse to avoid providing access to executive positions, jobs, contracts.'
Another anonymous board member statement says Smith 'has single handedly diminished Detroit's and the Conservancy's reputation.'
'Just when Detroit is getting accolades as the No. 1 Riverwalk in the United States three years in a row, for the revitalization of the city, and for the NFL draft, Mr. Smith's scandal has put us in a negative light,' it says.
The more than 40-member conservancy board is made up of the region's top political, business and philanthropic leaders. After details of the theft were revealed last year, nonprofit governance experts highlighted a range of apparent red flags at the organization, including Smith's sole access to a conservancy checking account, a lack of board scrutiny of his business dealings, and the board's use of the same auditor for more than a decade.
More: Experts review how Detroit Riverfront Conservancy could have missed alleged $40M fraud
Violet Ikonomova is an investigative reporter at the Free Press focused on government and police accountability. Contract her at vikonomova@
This article originally appeared on Detroit Free Press: Detroit Riverfront Conservancy seeks max sentence for stealing CFO
