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Detroit Riverfront Conservancy CFO on Leave Amid Financial Investigation
The Detroit Riverfront Conservancy has placed its chief financial officer on leave pending an investigation into possible financial mismanagement.
The CFO of the conservancy is William A. Smith. Conservancy President Matt Cullen said Tuesday that he will oversee the organization’s operations during the investigation.
“I recently became concerned about the accuracy of the management reports and financial statements that were provided to the Detroit Riverfront Conservancy Board,” Cullen wrote in a statement Tuesday.
Cullen said that after consulting with council leadership, they immediately ordered an independent forensic audit by PwC. They also sought advice from the law firm Honigman and its lead partner in the investigations, former U.S. Attorney Matthew Schneider. Schneider, through a spokesperson, declined to comment beyond the statement released by the conservancy on Tuesday.
“Based on Honigman’s recommendation, we have placed the Conservancy’s chief financial officer on leave,” Cullen wrote.
Cullen said he forwarded the financial records to the Michigan State Police and requested a criminal investigation.
“While this investigation is ongoing, I will step in to oversee TNC operations,” Cullen said.
Smith did not immediately return a call seeking comment.
Mark Wallace remains active in his role as president and CEO of the conservancy, according to the organization.
Lt. Mike Shaw, a spokesman for the Michigan State Police, said his agency received a request for an investigation on Tuesday.
“We’re looking at the entire conservation area,” Shaw said. “We would investigate and hand those findings over to the Public Prosecutor’s Office or the Attorney General and they would make an assessment of any type of criminality involved.”
Cullen declined further comment beyond his Tuesday statement.
“The riverfront is a beloved and important community asset, and we are committed to building a vibrant space for all metro Detroiters to enjoy,” Cullen wrote. “The project is moving forward and will be stronger because of what we learned from the Board-controlled internal review and the State Police investigation. We owe it to our donors, other key stakeholders and the entire Detroit community to be transparent and accountable about this situation – and that is exactly what we will be.”
The conservancy is a nonprofit organization that focuses on transforming Detroit’s riverfront.
cwilliams@detroitnews.com