Detroit Riverfront Conservancy fires CFO after investigation, $40 million could be lost

DETROIT (WXYZ) — The board of the Detroit Riverfront Conservancy has voted to fire its chief financial officer and replace its CEO after a financial investigation was launched and turned over to the FBI, the organization said.

William Smith, the previous CFO, was placed on leave earlier this month after CEO Matt Cullen said he was “concerned about the accuracy of the management reports and financial statements” presented to the board.

The accounting firm PwC and the law firm Honigman were commissioned to investigate. Evidence of alleged financial misconduct by the CFO was presented to the Michigan State Police. A criminal investigation was requested.

The investigation was then handed over to the FBI after it became more complex, according to Cullen.

Check out our previous report on the FBI taking over the investigation below:

FBI launches financial investigation into CFO of Detroit Riverfront Conservancy

Honigman found that more than $40 million was missing, the conservation agency said.

On Friday, the Detroit Riverfront Conservancy announced that Ryan Sullivan will serve as interim CEO, replacing Mark Wallace. Wallace has resigned as CEO but will remain with the company as an interim adviser.

Detroit Riverfront Conservancy

Sullivan will oversee a Board-ordered review of the Group’s financial, governance and operating policies.

The conservation authority appointed Karen Slaughter-DePerry as executive director, saying she is a longtime conservation leader and will be responsible for all construction activities.

Detroit Riverfront Conservancy

“As volunteers, we believed that the right team and processes were in place to protect the financial integrity of the organizations,” the board said in a resolution. “That belief has been disproved by the recent discovery of this serious financial crime.”

The board said it was working to get the money back from Smith.

Former U.S. Attorney Matthew Schneider is leading the Honigman investigation and sent Smith’s attorney a letter terminating his employment, which states:

Quattro Financial Services has been appointed to oversee the financial and accounting activities of the Nature Conservation Authority.

The environmental organization also said it had “received new philanthropic funding to ensure the timely completion of the revitalization of Detroit’s International Riverfront.”