DETROIT (WXYZ) — The former CFO of the Detroit Riverfront Conservancy, William A. Smith, was back in court Monday.
PREVIOUS REPORT: Ex-Detroit Riverfront Conservancy CFO expected to enter guilty plea next month
Smith is accused of embezzling somewhere between $25 million and $65 million from the nonprofit over the course of 12 years. Monday he faced Judge Susan DeClercq for a plea hearing on charges of wire fraud and laundering of monetary instruments. Both charges carry a maximum sentence of 20 years.
Smith was expected to enter a guilty plea on Monday. Seated between his attorneys in a courtroom of his former Detroit Riverfront Conservancy colleagues, the former CFO began the process of entering a guilty plea. However, when the U.S. Attorneys began discussing terms of the plea agreement, the defense requested a recess to discuss some of the terms of the deal.
PREVIOUS REPORT: Ex-Detroit Riverfront Conservancy CFO charged with embezzling $40M dating back to 2012
After about 10 minutes, both parties returned saying they would need to proceed with the plea hearing on another day as they require more time for discussion.
“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," said Detroit Riverfront Conservancy CEO Ryan Sullivan. "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.”
While it's unclear which portion of the deal required further discussion, some of the terms read aloud in court are as follows:
- Minimum restitution of $44.3 Million
- Forfeiture of property obtained via criminal conduct
- Special assessment fee of $200 due immediately after sentencing
- No right to appeal
- There was no agreement on a monetary fine
- The length of sentencing is set to be determined by the court.However, there was a suggested 15-19 years in jail
- Neither party can withdraw from the plea agreement after it has been accepted by the court
Detroiters who frequently enjoy the riverfront say they would like to see Smith brought to justice.
"I’m very upset about that cause things were going good down here," said Keith Woolfolk as he sat riverside Monday. "The city is making a comeback and we don’t need that. So I hope (Smith) gets some time in jail for that and not just a slap on the wrist."
Detroiters say the riverfront represents where the city is going and it was disappointing to see someone trying to interfere with its progress.
"If I’m not mistaken, it’s been the best river walk the last 4 or 5 years. So we definitely as Detroiters have something special that we want the world to see," said Diane Thompkins while out walking the riverfront. "It’s disappointing but that’s life and what we do as the bounce-back city anyway, so we’re just bouncing back."
Thompkins says she hopes other Detroiters are still willing to donate to the nonprofit and support the city.
"A lot of times people are investing, they’re donating, they’re contributing. So for that to happen, it’s sad but I love the way they came back and said you know what we’re not going to let that take us out," said Thompkins. "Will I still give? Yes, I will. I will still contribute because it’s like a legacy thing."
At this time there is no date set for Smith’s next court appearance. Judge Susan DeClercq says it will be determined once the two parties have come to an agreement on the terms of the plea deal.
7 News Detroit did offer on-camera interviews to both the U.S. Attorneys in the case and William Smith and the defense following the hearing, however, all three parties declined.
