FBI Taking Over Financial Investigation of Detroit Riverfront Conservancy CFO

The Federal Bureau of Investigation will take over the financial investigation of the Detroit Riverfront Conservancy, according to board chairman Matt Cullen.

Last week, the Riverfront Conservancy announced that its CFO, William Smith, was removed amid a financial investigation.

Cullen said last week that he “was concerned about the accuracy of the management reports and financial statements that were provided to the Board of the Detroit Riverfront Conservancy.”

The Honigman law firm was called in to investigate and then brought evidence of financial irregularities committed by the CFO to the Michigan State Police and requested a criminal investigation.

According to Cullen’s statement, the MSP said the investigation was too complex and turned it over to the FBI.

“We are cooperating with authorities and are determined to do whatever is necessary to get to the bottom of this matter,” Cullen said in a statement.

“My question is why would you want to leave Detroit?” asked Detroiter Tiffany Cook, who says she loves the riverfront.

I dug deeper into the public disclosures of their finances. The numbers show revenues of $25 million last year, more than $15 million in expenses and $175 million in total assets.

“They will involve a deep dive into the nonprofit or business organization’s financial network. There are business records, and in this case, annual reports to the state and federal government are required,” says retired FBI Asst. Director Dan Roberts.

He says the money may have left the state and agents are likely already combing through records.

Consultant Angela Rogensus also adds: “This erodes public trust in these organizations, but it also reduces the ability of these organizations to operate with the flexibility they need.”

We have also requested an interview with the nonprofit but are still awaiting a response. Roberts told me that the IRS will likely work closely with the FBI in the future.

Smith will remain on unpaid leave and Riverfront Conservancy has hired Quatrro Business Support Solutions to oversee the conservancy’s day-to-day accounting and financial functions.

“As soon as we can, TNC will share with the public and its many stakeholders exactly what happened, how it happened and our full plans for moving forward,” Cullen said.

According to Cullen, the project continues to move forward and he said they will be stronger for what they learn.

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