Finance Strategy: CFO of Detroit Riverfront Conservancy Facing Foreclosure

The ex - CFO of the Detroit Riverfront Conservancy has been granted a monthly allowance for living expenses , despite his assets being frozen due to allegations of embezzlement . William Smith is allowed , 421 per month for food , housing , and other needs , based on IRS standards . Prosecutors claim Smith stole 0 million from the nonprofit to fund his extravagant lifestyle , including luxury purchases like a 7,500 Louis Vuitton item . Smith faces charges of wire and bank fraud , with a federal judge blocking access to his assets until at least Aug. 29.

Smith , who owns properties in multiple states and a yacht , is accused of using Conservancy funds for personal expenses . The latest court order allowing his living expenses comes after a nonprofit lender , Invest Detroit , announced possible foreclosure on one of Smith 's failed businesses . The loans provided to Smith for the business have raised concerns about conflicts of interest , as Invest Detroit and the Conservancy share board members.

Despite Smith 's involvement in both organizations , Invest Detroit claims there were no issues with granting him millions for a Cigar Bar project . The advisory committee that Smith was part of did not review the loans to him , raising questions about oversight . Invest Detroit approved two loans for Smith , one for purchasing a property and another for construction costs , but the construction never started , according to Invest Detroit CEO Dave Blaskiewicz.

The case involving Smith 's alleged embezzlement and questionable business dealings has sparked controversy and scrutiny among the Detroit community . The allegations against Smith have highlighted the importance of financial oversight and transparency in nonprofit organizations . The ongoing legal proceedings and financial investigations will likely have a significant impact on the reputation and operations of both the Detroit Riverfront Conservancy and Invest Detroit.

Violet Ikonomova , an investigative reporter at the Detroit Free Press , has been covering the developments in the case . As more details emerge and the court proceedings continue , the public will be watching closely to see how the situation unfolds . The implications of this scandal go beyond just one individual , as it raises broader questions about accountability , integrity , and financial management in the nonprofit sector.