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Detroit Riverfront Conservancy fires CFO amid FBI financial probe
(CBS DETROIT) The Detroit Riverfront Conservancy fired chief financial officer William Smith on Friday. Smith is currently the subject of an FBI investigation.
The nonprofit’s CEO, Mark Wallace, also resigned but will remain with the group as an advisor during the transition. Ryan Sullivan has been hired as interim CEO.
Smith was placed on unpaid leave in mid-May after financial statement discrepancies were discovered in April. The nonprofit’s board ordered investigations by auditing firm PwC and law firm Honigman. The group asked former U.S. Attorney Matthew Schneider, who leads investigators at the Honigman law firm, to bring evidence against Smith to the Michigan State Police and request a criminal investigation. The FBI has since took over the investigation because of its complexity.
A letter sent by Schneider to Smith’s attorney, notifying them of the board’s intention to fire Smith, states: “Our investigation revealed that Mr. Smith embezzled significant sums of money from DRFC and converted DRFC funds for his personal use. Mr. Smith’s illegal conduct spans several years. We are therefore terminating Mr. Smith’s employment with DRFC, effective immediately, for cause.
According to the Detroit Riverfront Conservancy, the two independent investigations estimate the loss to the nonprofit at more than $40 million.
“As volunteers, we believed the right team and processes existed to protect the financial integrity of organizations,” the council said in a statement. “That belief has been disillusioned by the recent discovery of this significant financial crime.”
The nonprofit recently hired Quatrro Business Support Solutions to oversee day-to-day accounting and finance functions.
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