Detroit Riverfront Conservancy files lawsuit against former CFO, accused of stealing $40 million over a decade

DETROIT (WWJ) — The Detroit Riverfront Conservancy has filed a civil lawsuit against its former CFO, William Smith, along with his mother, wife, sister and best man at his wedding.

The lawsuit, filed Wednesday, details an elaborate conspiracy to steal nearly $40 million from the conservancy over more than a decade, allegations that were made public in early June by federal prosecutors.

The Detroit Riverfront Conservancy — a non-profit organization formed with the mission of “developing access to the Detroit International Riverfront from the Ambassador Bridge to Belle Isle” — is funded by a combination of public and private funds.

The conservancy's attorney, former US Attorney Matthew Schneider, said Wednesday the conservancy is still investigating whether Smith stole more than the $40 million originally announced by federal prosecutors.

Smith is accused of using the stolen money on lavish purchases, including NFL tickets, vacations, airfare and hotels, as well as luxury items from Gucci and Louis Vuitton.

Schneider said Smith created side accounts and handed out credit cards as gifts to his friends and relatives.

“Will Smith gave his relatives copies of the American Express card. So, these relatives accepted these cards and they used them. They knew what Smith’s income level was, they knew that they were charging exorbitant amounts and all of those amounts were paid for with the conservancy’s funds,” Schneider said Wednesday.

The lawsuit claims Smith made many airline purchases for passengers other than himself and many of those expenses appear to have been made for professional athletes.

Smith is awaiting trial on the federal charges of bank fraud and wire fraud, and his lawyers are reportedly working on negotiating a possible plea deal.