Financial Misappropriation
William Smith, former CFO of the Detroit Riverfront Conservancy, was sentenced to 19 years for stealing $44.3 million intended for Detroit's riverfront revitalization, marking one of the city's largest frauds.
Smith's embezzlement scheme, spanning from 2012 to early 2024, involved diverting funds for personal luxuries and investments, severely impacting community trust and project delays.
Legal and Community Repercussions
Smith was ordered to pay over $48 million in restitution, with efforts to recover assets yielding $649,000 so far, despite expectations of only $2-3 million recovery for the conservancy.
The scandal led to the resignation of CEO Mark Wallace and a loss of trust in the nonprofit sector, with the judge emphasizing the broader harm to Detroit's post-bankruptcy recovery efforts.