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.
How Did He Allegedly Do It?
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.
What Did He Spend The Money On?
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.
What Are The Consequences?
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.