Associated Press reports that legal representatives for the former CFO of Detroit Riverfront Conservancy, William Smith, abruptly postponed his guilty plea during a court hearing on Oct. 21.
Smith, who controlled the finances of the prominent nonprofit, is accused of stealing more than $40 million. Prior to his lawyers’ announcement, Smith told a judge that he was prepared to plead guilty to wire fraud and money laundering, resulting in a potential sentence of more than 15 years. However, after a private discussion between prosecutors and the defense during a brief recess, Smith’s attorney, Gerald Evelyn, said the team needed more time, without cause nor a new court date.
Following the end of the hearing, Assistant U.S. Attorney John Neal said Smith and his lawyers agreed to the minimum loss being $44.3 million but admitted the possibility of it being “higher.”
The 52-year-old was arrested in June 2024 after investigators alleged he consistently used money from Riverfront to fund credit card bills for travel, hotels, limousines, clothes, jewelry, and household items. U.S. Attorney Dawn Ison labeled the extent of the fraud as “astonishing in scale.”
The mission of Riverfront is to transform the shores alongside the Detroit River into a recreational place, including green spaces, plazas, and pavilions. The prestigious organization has a board of directors comprising some of Michiagn’s top business and government personnel. According to the Detroit Free Press, CEO Ryan Sullivan said he is disappointed in the change of the guilty plea. “We are disappointed that today did not meet our expectations of a guilty plea, and we look forward to this being resolved in the near future,” Sullivan said in a statement.
“All of us at the Detroit Riverfront Conservancy are thankful to the United States Attorney’s Office for their continued efforts in investigating and prosecuting this case.”
The funds were allegedly stolen funds between November 2012 through May 2024. Smith is accused of transferring conservancy funds from the group’s Comerica Bank account to an account in the name of The Joseph Group & Associates LLC, a company owned and controlled by Smith himself.
While Smith is unemployed after the embezzlement scandal, he worked for the conservancy for 18 years and holds a bachelor’s degree in accounting and a master’s degree in finance. If the disgraced CFO is convicted of the charges, he may have to pay fines of $250,000 and $500,000 and stay in jail for 20 years.
A civil lawsuit was also filed against Smith, his family members, and a friend — as they were recipients of the alleged embezzled items. The suit, filed in July 2024, is an attempt to recoup the millions allegedly stolen by Smith.
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