DETROIT (WWJ) — Former Detroit Riverfront Conservancy CFO William Smith, accused of wire fraud and money laundering after embezzling nearly $40 million from the group, appeared in court Thursday.
Smith stood mute with the magistrate entering a not guilty plea on his behalf, waiving his right to a grand jury investigation. He is facing new charges of embezzling an additional $15 million from the organization, WWJ Newsradio 950's Tim Pamplin reported from outside the courthouse.
Smith was fired from the conservancy in late May in connection with the alleged scheme that dates back to at least 2012.
On Wednesday federal prosecutors filed new wire fraud and money laundering charges in a criminal information, a charging document that typically anticipates a plea deal is forthcoming. The Detroit News reports Smith is expected to plead guilty on Oct. 21.
Authorities allege Smith embezzled money that was supposed to be used to beautify the Detroit Riverfront and instead spent it on jewelry, plane tickets, limousines and other luxury expenses, including massive credit card bills.
He is also accused of diverting funds to the Joseph Group, a company he controlled, but one that was not an approved vendor and did not provide services to the conservancy.
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, according to U.S. Attorney Dawn Ison’s Office.
Smith served as the DRFC’s CFO from 2011 until he was fired in late May. He could face up to 20 years in prison for the scheme.
WWJ Newsradio 950’s Tim Pamplin is covering Thursday’s court appearance in Detroit. Stay tuned for the latest updates as they become available.
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