The ex-chief financial officer for the Detroit Riverfront Conservancy pleaded guilty Friday to wire fraud and money laundering for embezzling more than $40 million from the nonprofit in a yearslong scheme.

Smith, 52, agreed to pay restitution of at least $44.3 million in his efforts “to divert millions in Conservancy funds,” which occurred over a decade and helped support what prosecutors have characterized as his lavish lifestyle, according to The Detroit Free Press. 

U.S. District Judge Susan DeClercq will decide Smith’s sentence at a hearing scheduled for March 20, according to court documents. 

Assistant U.S. Attorney John Neal said sentencing guidelines indicate Smith could receive between 15½ years and 19½ years in prison, but added that Smith and his attorneys have disagreed with that assessment, the Free Press reported. 

Friday’s guilty plea followed the derailment of a similar hearing three weeks prior, after Smith’s attorney said he identified an issue with the plea agreement that was not disclosed.

In June, Smith was charged with bank and wire fraud by U.S. Attorney Dawn N. Ison on allegations that he orchestrated a plan as early as November 2012 to funnel millions from the nonprofit conservancy focused on promoting and revitalizing the international riverfront. 

The criminal complaint was filed just days after the conservancy announced Smith’s firing and the resignation of longtime Chief Executive Officer Mark Wallace. Conservancy Board Chair Matt Cullen also authorized two investigations led by former U.S. Attorney Matthew Schneider – one by the auditing firm PwC and another by the Honigman Law Firm.

According to the complaint, Smith used conservancy funds to pay for charges that he and his family accrued on an American Express account. Federal authorities have said he also diverted conservancy funds to a company he controlled called “The Joseph Group.” The company was not an approved vendor of the conservancy board nor did it provide any conservancy services.

In early 2013, Smith used a credit card to purchase airline tickets for himself and others, pay insurance premiums and buy significant clothing and jewelry purchases, including $4,850 worth of men’s wear from Revive in Birmingham and $5,618 in jewelry from Diamonds Direct in Southfield. Other charges ranged from more than $12,000 at a Chevrolet dealer and over $17,000 from Louis Vuitton.

Bank statements showed that on March 14, 2013, Smith made a $96,000 payment from the conservancy’s Comerica bank account to his American Express account. 

That June, federal authorities allege, he used more than $22,000 of conservancy funding for his personal residence, including lawn care services and items from The Home Depot, Art Van Furniture, Wayfair and Scott Shuptrine. 

To cover up his acts, Smith doctored bank statements that he is then accused of providing to the conservancy’s accountant for entry into the nonprofit’s accounting software. 

Smith is accused of obtaining a $5 million line of credit with Citizens Bank in 2023 on the conservancy’s behalf – a line of credit he was not authorized to take out. 

The bank asked Smith for documentation confirming that he, as CFO, had the sole authority to obtain the line of credit on behalf of the conservancy. Smith is alleged to have provided the bank with a false forged document purporting that he was empowered by the conservancy’s Board of Directors to obtain credit lines. 

Smith was CFO of the conservancy from 2011 until he was fired in late May. The nonprofit is funded by a combination of public and private dollars. 

Wayne County Prosecutor Kym L. Worthy has said the case was initially brought to her office on May 14. Worthy’s office contacted Ison, who immediately agreed to take the case. 

Smith was initially placed on paid leave from the conservancy on May 10, and, by May 17, he stopped receiving conservancy compensation. He was terminated on May 31.