Detroit Riverfront Conservancy's ex-CFO pleads guilty
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Former Detroit Riverfront Conservancy CFO William Smith leaving federal court in October. Photo: Joe Guillen/Axios
Former Detroit Riverfront Conservancy CFO William A. Smith pleaded guilty in federal court to charges in a decade-long scheme to steal more than $40 million from the nonprofit Detroit Riverfront Conservancy.
The big picture: "I plead guilty, your honor," Smith, 52, said Friday. He let out an audible breath before briefly describing to the court and U.S. District Judge Susan K. DeClercq the actions for which he pleaded guilty.
- Smith admitted that starting in 2012, he began taking "millions" in funds from the conservancy "for my own personal use."
State of play: Smith's guilty plea and plea agreement waive his right to trial. Each charge he pleaded guilty to — wire fraud and money laundering — carries a maximum sentence of 20 years.
- The U.S. Attorney's Office for the Eastern District of Michigan recommended a sentence of roughly 15 to 20 years (188-235 months).
- The attorney's office said the defense may argue for less.
- DeClercq emphasized that her final decision can differ from the recommendations.
Between the lines: Smith has agreed to a minimum of $44.3 million in restitution and to cooperate to recover assets to help complete the restitution process.
What they're saying: "We achieved a big milestone in this case," Riverfront Conservancy CEO Ryan Sullivan told reporters after the hearing. He called Smith's actions "disgraceful" and lauded the U.S. Attorney's Office and FBI's "thorough" investigative efforts.
- Sullivan added that the conservancy is thankful that Smith must cooperate to help the government return stolen funds.
- He said the conservancy will continue its civil suit as it pursues all legal avenues.
Dawn Ison, the U.S. Attorney based in Detroit, said in a statement Friday that the crime is "astonishing in its scope and impact."
- "Smith not only betrayed the Conservancy's trust, but he betrayed the trust of the whole community, all so that he could enjoy the trappings of wealth and comfort," the statement read.
- Smith's attorney, Gerald K. Evelyn, did not immediately respond to a request for comment.
What's next: Smith's sentencing is scheduled for March 20.
Flashback: A hearing for an expected guilty plea in October was postponed. The Detroit Riverfront Conservancy first disclosed the losses and its firing of Smith in a revelation in May. The sheer size and scope rocked the local business and philanthropic communities.
- Of the scheme, federal prosecutors have said Smith embezzled the money to pay for luxuries, including hotels, limos, and jewelry.
According to a press release from the U.S. Attorney's Office summarizing the plea agreement, Smith diverted money from the nonprofit's bank accounts to his company, The Joseph Group.
- He also issued cashier's checks and paid off credit card purchases using conservancy money. He took "complex steps to disguise the origin of the funds" and transferred them "through elaborate chains of intermediate entities."