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William Smith and girlfriend, S.R. (Government photos)
Federal prosecutors are recommending that former CFO William A. Smith be sentenced to 18 years in prison for embezzling more than $40 million from the Detroit Riverfront Conservancy over a span of just over 11 years.
"Smith spent the embezzled funds almost exclusively on goods and services for himself, his family, and his personal associates," prosecutors said in a 35-page sentencing memorandum filed Thursday in U.S. District Court in Detroit. "Smith’s lifestyle was lavish and his tastes extravagant. Over the course of his scheme, Smith spent enormous sums of money on basketball tickets, cruises, private jet travel, designer clothing, jewelry, and other trappings of wealth and comfort."
He also gave $3.7 million to a romantic interest identified in the court document as S.R., and leased her a Maserati. The document described the woman as an associate who became romantically involved with Smith.
"Smith’s gilded lifestyle came at the expense of the Conservancy and its donors, who entrusted Smith with ensuring that the Conservancy’s money was used for the purpose of enhancing the Detroit riverfront for the benefit of the city and the public," prosecutors wrote.
Sentencing is set for April 24.
Prosecutors are also asking that the judge order Smith to pay restitution of no less than $44.3 million.
Additionally, prosecutors said Smith:
- Leased a $200,000 Mercedes-Benz.
- Purchased or leased other vehicles.
- Chartered a yacht for a Mediterranean cruise and a private jet to travel to Las Vegas.
- Charged more than $526,000 on items from luxury retailers Gucci and Louis Vuitton.
- Charged more than $507,000 on floor seats for Detroit Pistons games.
