DETROIT (WXYZ) — A federal judge has sentenced former Detroit Riverfront Conservancy CFO William Smith to 19 years in federal prison for embezzling more than $44 million from the nonprofit over more than a decade.
The judge also ordered him to pay more than $48 million in restitution.
See video of Smith leaving the courthouse after sentencing in the video below:
The Detroit Riverfront Conservancy released a statement after the sentencing. It reads:
"Today, we move forward to a bright future.
We are incredibly grateful to U.S. District Judge Susan DeClercq for imposing a sentence commensurate the damage Will Smith inflicted on the Detroit Riverfront Conservancy and its community of visitors, donors, and supporters. The U.S. government accurately described him as a man of “corrupt and depraved character” who, through a complex web of deception, stole millions of dollars from an institution responsible for leading the revival of Detroit’s riverfront from an industrial wasteland to being voted the best riverwalk for three consecutive years.
The Detroit Riverfront Conservancy will continue to pursue all criminal and civil court avenues to reclaim assets he stole from this community. Meanwhile, our focus is on an exciting series of developments as we secure the future of the nation’s greatest riverwalk."
Smith, 52, pleaded guilty last November to charges of wire fraud and money laundering. He was fired from the nonprofit last year after investigators say he embezzled tens of millions. Attorneys in the case say Smith used the money to support a "lavish lifestyle."
"Smith’s crimes were not the product of a momentary lapse of judgment – they went on for years and involved hundreds of discrete acts of deception. And the scale of his theft is mind-boggling and could only be perpetrated by an individual of a deeply corrupt and depraved character," prosecutors said in a sentencing memorandum filed earlier this month.
In a filing by Smith's attorneys, they wrote that Smith in an interview, "I want the judge to know that I am extremely remorseful and want the opportunity to work to get the victims as close to whole as possible. I am ashamed of what I’ve done to the city and the project that I love. This behavior is something that I will never show again. My intentions are to continue to work to restore the trust and respect of the community that I let down."
Feds say the scheme began in late 2012 and continued through May 2024 and they detailed the three forms of embezzlement.
- First, by diverting conservancy funds to a bank account in the name of "The Joseph Group & Associates, LLC." Feds say he transferred approximately $24.4 million to the account.
- Second, he maintained an American Express account in the name of another entity he owned and controlled. He used approximately $14.9 million in conservancy funds to pay off purchases.
- Third, he used conservancy funds to purchase cashier's checks from various institutions.
"Smith used the money that he embezzled from the Conservancy to live a deeply immoderate lifestyle. He spent the Conservancy’s money profligately, with no concept of thrift and little concern for the long-term value of what he purchased – after all, the money was not his," the feds said in the memorandum. "Smith bought considerable real estate, expensive clothing and jewelry. He purchased a thirty-five-foot boat, leased a $200,000 Mercedes-Benz, and purchased or leased other vehicles. Smith also used the stolen money to travel; he chartered a yacht for a Mediterranean cruise and a private jet to travel to Las Vegas."
Prosecutors also detailed many purchases made by Smith over the course of the 11-year scheme.
They say that he spent a "considerable amount of money" on a female associate that he was romantically involved with. They allege that Smith provided the female associate with nearly $3.7 million in conservancy money through wire transfers, and that does not include gifts, travel or jewelry that Smith charged on his American Express card.
In October 2021, the feds say Smith and the female associate chartered a private yacht called "The XO of the Sea" for a weeklong Mediterranean cruise that cost $100,016.13 for the rental.
The feds say other major expenses from the embezzlement include:
- $526,000 charged on items from Gucci and Louis Vuitton
- $507,000 on Detroit Pistons floor seats
- $94,023 for a chartered private jet for a trip to Las Vegas
- $8,219.01 at the Drais Rooftop in Las Vegas for the same trip
- $5,656.44 at the Drais Beach Club in Las Vegas
- $45,000 to attend a Lions game in Los Angeles in October 2021
- $29,000 rental for a private suite at the game
- $3,533.16 at the stadium suites restaurant
- $2,350.74 for two nights at The Shay Ivy Station boutique hotel
- $1,686.28 at Nusr-Et Restaurant in Beverly Hills
- $6,372.90 at Louis Vuitton in Beverly Hills
- Over $94,000 in airline tickets for the female associate and himself
- $54,400 at Golden Sun Jewelry in Southfield
- In March 2019, a $24,989 deposit for a wedding venue in Mexico
- In June 2020, another $35,000 for the wedding venue in Mexico
Smith also allegedly embezzled the funds to purchase a residence in cash in Cypress, Texas, in October 2021 that cost $429,034.62.
