Core Summary

  • U.S. District Judge Linda V. Parker issued a temporary restraining order on Saturday freezing up to $39.3 million in assets belonging to William A. Smith, the former chief financial officer of the Detroit Riverfront Conservancy. The order was based on a now-unsealed court document and came about three weeks after federal prosecutors filed criminal charges against Smith.
  • Federal prosecutors allege that Smith, 51, stole "tens of millions of dollars" through an embezzlement scheme while serving as the nonprofit's treasurer from November 2012 to March 2024, and have charged him with bank fraud and wire fraud. U.S. Attorney Dawn Ison requested injunctive relief on Friday, arguing that Smith was "actively transferring and dissipating assets," including those potentially obtained through fraud and money laundering, which could have been used to compensate victims.
  • Court documents show that Smith is suspected of controlling a two-bedroom condominium in Los Cabos, Mexico, which was listed for sale at $385,000 as of June 12; he also recently attempted to sell a 36-foot Cruisers 35 Express yacht named "SS Duo." The documents also list two motorcycles and real estate in Michigan, Texas, and Georgia among his assets.

In-Depth Analysis

This restraining order is the latest development in the fraud case that has shaken the Conservancy, a nonprofit registered under Section 501(c)(3) whose mission is to develop public access to the Detroit International Riverfront, including a riverwalk with plazas, pavilions, and green spaces.

Smith joined the Detroit Riverfront Conservancy (DRC) in 2006 as senior director of finance and was promoted to chief financial officer in 2011. He was a finalist for the 2013 Crain's CFO of the Year award and also served on the board of Develop Detroit, a nonprofit focused on affordable and mixed-income housing.

However, circumstances took a sharp turn recently. According to court documents, Smith held the treasurer position until May of this year, was initially placed on suspension, and was ultimately terminated "for cause" on May 31.

The documents state that the government alleges Smith "embezzled funds belonging to the DRC as early as November 2012 and continuing until his suspension, falsified documents to conceal his theft from the Conservancy's board and staff, and, after his embezzlement threatened the Conservancy's cash reserves, fraudulently obtained a $5 million line of credit from a financial institution secured by the Conservancy's pledge contributions."

The government also alleges in the case that Smith used the embezzled funds for personal enjoyment, with expenditures covering items such as airline tickets, hotels, limousines, household goods, lawn care, clothing, and jewelry.

As of press time, neither the Conservancy nor Smith's attorney, Gerald Evelyn, immediately responded to requests for comment. A court hearing on the matter has been scheduled for Thursday.