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FBI asked to take over investigation into Detroit Riverfront Conservancy’s finances
The Federal Bureau of Investigation has been asked to take over the criminal investigation into potential financial mismanagement at the Detroit Riverfront Conservancy.
Michigan State Police opened an investigation last week after a law firm hired by the conservatorship provided “evidence of financial irregularities” amid the suspension of Chief Financial Officer William A. Smith, according to a statement released Tuesday by the nonprofit board chairman Matt Cullen.
“The State Police have informed us that due to the nature and complexity of the situation, they have turned over the investigation to the Federal Bureau of Investigation,” said Cullen, who also previously ran the real estate firm Bedrock Detroit. “We are cooperating with authorities and are determined to do whatever is necessary to get to the bottom of this matter.”
Detroit Riverfront Conservancy Chief Financial Officer William Smith speaks during a press conference on May 12, 2021. The nonprofit announced last week that it has placed Smith on unpaid leave amid a criminal investigation into the conservancy’s finances .
Michigan State Police Lt. Michael Shaw confirmed the investigation was turned over to the FBI “because they are better suited to a long-term (white collar) crime case,” he said.
Smith could not be reached for comment. He has been placed on unpaid leave pending the investigation launched last week and the organization has hired an outside company – Quatrro Business Support Solutions – to oversee day-to-day accounting and finance functions, Cullen said.
More: Detroit Riverfront CFO Sidelined Amid Michigan State Police Criminal Investigation
He said in the statement that the group would provide details “of what happened, how it happened and our full plans for moving forward” as quickly as possible.
The nonprofit organization has received hundreds of millions of dollars from government, private and philanthropic sources to develop 5.5 miles of riverfront between the Ambassador and Belle Isle bridges.
Smith has served as CFO since at least 2015 and earned $242,155 in 2021, IRS records show.
He was removed after an independent audit was requested when Cullen previously said he “became concerned about the accuracy of management reports and financial statements”. The findings were forwarded to authorities based on advice from the outside law firm, Honigman, Cullen said.
Violet Ikonomova is an investigative reporter for the Detroit Free Press. Contact her at vikonomova@freepress.com.
This article originally appeared in the Detroit Free Press: FBI asked to take over investigation of Detroit Riverfront Conservancy