$40 million theft from Detroit Riverfront Conservancy won’t stop construction of new park

DETROIT — Construction on a brand new waterfront park in Detroit won’t stop because of millions of dollars stolen from the nonprofit behind the project, officials said this week.

The Detroit Riverfront Conservancy is working to stabilize its operations after its former chief financial officer, William Smith, was charged by the federal government with bank and wire fraud after allegedly stealing millions from the nonprofit. At a fundraiser this week, nonprofit leaders told donors they were trying to recover every penny of the $40 million allegedly stolen by Smith.

The fundraising season kicked off with an event like no other for the Detroit Riverfront Conservancy simply because of the position Smith is accused of putting it in. Smith allegedly siphoned $40 million from the nonprofit for more than a decade, spending the money on plane tickets, hotels, limousines, clothing, jewelry, luxury goods and more.

“We have all been betrayed by a bad guy we trusted who has now been indicted by federal prosecutors,” board chairman Matt Cullen told donors at a fundraising event on Monday June 10. “The consequences of this betrayal are devastating for all of us.

The investigation into how Smith allegedly accomplished this is ongoing. The conservatory has already replaced the CEO, who recently resigned.

Despite the theft, the association is committed to continuing its mission.

The nonprofit is already halfway through developing a massive new park on the west side of Detroit’s waterfront. This project is now in jeopardy due to these depleted coffers.

But Cullen and the entire team promised to continue the work. Karen Slaughter Duperry, a former General Motors executive, was named to oversee construction.

“Remember who you’re building this for,” Duperry told the crowd of supporters and donors. “You’re building it for kids who can barely get to Cedar Point. You’re building it for kids for whom Disney Land is out of the question. You build it so they can have fantasies and they can have good childhood memories.

The conservancy has promised the new park will open in 2025.

Watch Mara MacDonald’s full report on this below.