Ex-CFO pleads guilty to wire fraud and money laundering in Detroit

DETROIT, Michigan: A shocking case of financial betrayal reached a turning point as William Smith, the former chief financial officer of the Detroit Riverfront Conservancy, pleaded guilty to stealing US$44 million from the organization.

The nonprofit, dedicated to revitalizing Detroit's riverfront, has been forced to delay parts of its ambitious projects due to the massive theft.

Smith, 52, appeared in Detroit federal court and admitted to wire fraud and money laundering. Over more than a decade, he siphoned funds intended for public spaces like parks, plazas, and recreational areas.

Investigators revealed he used the money to fund a lavish lifestyle, including luxury travel, hotels, limousines, and high-end goods, as well as investments in side ventures such as real estate, a nightclub, and amateur basketball.

"We are pleased to see Will Smith begin to be held accountable for his disgraceful actions," said Ryan Sullivan, the Conservancy's Chief Executive Officer, in a statement following the plea.

Smith was arrested in June after an investigation by the FBI uncovered the extent of his misconduct. "Mr. Smith's deceitful actions, which spanned more than a decade, not only broke the trust of his employer but the entire community," said Cheyvoryea Gibson, head of the FBI in Detroit.

The Detroit Riverfront Conservancy, known for transforming miles of riverfront into public spaces, said the theft has delayed its riverwalk project. The Conservancy's board of directors, comprising prominent Michigan business and government leaders, has been working to ensure the organization recovers from the financial damage.

Smith, who controlled the nonprofit's finances for years, faces a potential sentence of more than 15 years in prison. His sentencing is scheduled for March.