Detroit Riverfront Conservancy embezzlement probe that might top $40 Million

[Gistok]

Not accusing Sheffield for any wrong doing when I say that no elected officials should be sitting on a board of any profit or non profit organization. Their job is to legislate city government and focus on that only.

You will find that this is more common than you think. Semi-Public or Private-Public groups will usually have city government representation to represent the city's interest. The DEGC has both Mayor Duggan and Council President Sheffield on their board.

The city can't have public/private groups operate without some city input. This isn't unique to Detroit, but is common nationwide.

[Henry Whalley]

“You can't cheat an honest man.” W.C. Fields.

After lunch, did someone furnish Cuban cigars? If so, can I be on the board? [I've got lumbago, but I look good with a shovel and hardhat.]

Are the Conservancy's records public? If so, where are the minutes of board meetings? Not here: https://detroitriverfront.org/

P.S. I'll stand for reform like Homer Stokes in 'O Brother, Where Art Thou?'

[Henry Whalley]

...Who selected Smith to be CFO...without having to answer for any transactions

Good question. I'm sure investigative reporters are tracking this.

P.S. I'll be livid if Smith is offered a sweetheart plea deal.

[stasu1213]

You will find that this is more common than you think. Semi-Public or Private-Public groups will usually have city government representation to represent the city's interest. The DEGC has both Mayor Duggan and Council President Sheffield on their board.

The city can't have public/private groups operate without some city input. This isn't unique to Detroit, but is common nationwide.

Well someone dropped the ball. Oversight wasn't effective

[stasu1213]

Good question. I'm sure investigative reporters are tracking this.

P.S. I'll be livid if Smith is offered a sweetheart plea deal.

It’s been reported by the Detroit Wes that he had taken some type of plea deal. I think that an oversight review board should be set up by council as a whole to select and not just the President. This review team selected unanimously by the whole council could consist of one or more persons. Three would be great.

[Lowell]

I'd still like to see the indictment to get the nitty gritty of what he will be charge with. The talk seems to be that the indictment may be paired with the plea bargain.

This might be the best way recover anything left of the stolen money by having Smith's cooperation.

It also will spare the board of directors of embarrassing exposures that a lengthy trial would likely have.

[EASTSIDER BALDUCK]

Detroit corruption.
Detroit cover-up.

Is what it is, ain't nothing else.

[Gistok]

Detroit corruption.
Detroit cover-up.

Is what it is, ain't nothing else.

And how is that any different from any other location?

I live in Macomb County, and we have our fair share of scammers... the former Water Commissioner, the former mayor of Warren, the former city council member of Warren, and lots of others here alone. You can go to any city, county, or state in the union... and they're there... waiting until they get caught.

[ABetterDetroit]

And how is that any different from any other location?

I live in Macomb County, and we have our fair share of scammers... the former Water Commissioner, the former mayor of Warren, the former city council member of Warren, and lots of others here alone. You can go to any city, county, or state in the union... and they're there... waiting until they get caught.

Not even close to complete list for Macomb. Waste disposal contracts, road contracts. Several in jail. Next let’s go to the State level… Former house leader Rick Johnson in Federal Prison for selling legal weed licenses. Driving a Lamborghini given to him for influence for Christ sake. The next house leader after him Lee Chatfield indicted currently on felony charges for skimming millions in campaign funds, running a criminal enterprise, Ect… This crap is everywhere these days, not just Detroit.

[Gistok]

^ Oh yeah... the Macomb Water Commissioner Anthony Marrocco only got 3 months prison time and 2 years tethering [he's appealing that so the 75 year old can have people over, etc.].

Here's what a local paper had to say...

"Marrocco was the biggest target of a long-running federal crackdown of public corruption in Macomb County that led to the convictions of at least 23 contractors and public officials. The group includes former Macomb County Prosecutor Eric Smith, trash titan Chuck Rizzo, towing magnate Gasper Fiore, Marrocco's bagman Dino Bucci and former Clinton Township Trustee Dean Reynolds, who is serving a more than 15-year sentence for several bribery schemes."

I have to say that his replacement, former Rep. US congresswoman Candice Miller is doing a decent job as his replacement. Maybe she left congress after seeing what a mess it was working there?

[Henry Whalley]

...everywhere these days...

Doing the math, white-collar crime pays.

[Richard]

Power and money corrupts ,next thing you know somebody will be paying $600k per unit to build affordable housing in a city that has a medium home sale price of $75k,at the end of the day it’s always based on free money.

[Richard]

Doing the math, white-collar crime pays.

It depends on the sliding scale according to level of victimization.

Who were the victims in this crime ? The donors ? No they got the write off as soon as they donated.

The taxpayers,no because if the donations had not come in they would have never benefited from it anyways,if taxpayer money was involved,different story.

Then everything else is taken into account,IF Mr. Cullen is implicated or found liable in some form or fashion,he really has no reason to be in Detroit in the first place other then to oversee the multiple philanthropic interests he maintains in the city.

Is it worth it to take him out of the picture in the interests of the greater good?

Or they can pick a fall guy like they did with Kilpatrick,so you will never know the true extent.

[Henry Whalley]

...Who were the victims in this crime ?

The Conservancy was a victim. Detroit was a victim. The CFO's family and loved ones were victims.

Very Stable Genius, What's your point?

[Richard]

The Conservancy was a victim. Detroit was a victim. The CFO's family and loved ones were victims.

Very Stable Genius, What's your point?

your mouth has a bad habit of overriding your south end.

The conservatory is not a living being it’s a corporation 501C ,it cannot be a victim,stealing from it is no different then any employee stealing from any other company,and if Detroit could get compensated for missed opportunity it would be the richest city in the world,do you feel you were victimized over something you never had to begin with ?

[Gistok]

The Conservatory opens in August... but you knew that, right?

Sigh.... the Conservancy exists partly because the city of Detroit bought out 3 large cement silo companies along the riverfront, and relocated them at great expense. The city also donated other properties. So the city does lose in this crime... even if you don't think a 501C does. it's much more than the Conservancy...

[stasu1213]

I had walked along the western end of the Riverwalk behind the former Joe Louis Arena sight. Was a little disappointed to see that the section behind the River Tower Apartments is still fenced off. I had thought that the section would be open by late June with a path leading back to West Jefferson. I question the managing of the development of the Riverwalk. Two years ago work was being done on the Uniroyal site of the Riverwalk only to be abruptly halted with no explanation. The section behind the Riverfront Apartments had been completed for four years but had been fenced off since. I know that work is still being done on the Ralph Wilson Park but that's no excuse.

[stasu1213]

It depends on the sliding scale according to level of victimization.

Who were the victims in this crime ? The donors ? No they got the write off as soon as they donated.

The taxpayers,no because if the donations had not come in they would have never benefited from it anyways,if taxpayer money was involved,different story.

Then everything else is taken into account,IF Mr. Cullen is implicated or found liable in some form or fashion,he really has no reason to be in Detroit in the first place other then to oversee the multiple philanthropic interests he maintains in the city.

Is it worth it to take him out of the picture in the interests of the greater good?

Or they can pick a fall guy like they did with Kilpatrick,so you will never know the true extent.

The victims were those whom had donated and the foundations. They put their trust in a project and also a vision hoping to see an uninterrupted return on their investments. I say uninterrupted for since 2014 the developments had stalled, restarted, then stalled again. I am wondering if the dipping of hands in the cookie jar were partially the cause of this. One of the reason why DPS had an Emergency Manager installed 30 plus years ago was due to the alleged mismanagement and embezzlement of funds.

[Richard]

It’s a corporation established as a 501C,when you donate you get a receipt,and use that receipt to deduct that donation from the taxes you owe ,so the donors did not suffer financial loss.

The sub set of that discussion was White Collar Crime Pays,my response was not always and it depends on the victimization level,Bernie Madoff is in prison because he victimized investors,they weee not donors,but people say the banks were never charged during the melt down and that because people signed on the line for those mortgages.

The allegations so far have been financial crimes,There is $3 million in taxpayer funds but the mayor was quick to point out that part was not affected.

So why would he be so quick to clarify that ?

No charges of breach of trust which donors can possibly bring in a civil suit but at this point until we can see the actual indictment the only thing they alleged was financial crimes,as in an employee stole money from their employer.

What’s strange about it all is,it must be a sealed indictment otherwise it would be public.

“The Detroit Riverfront Conservancy’s CEO has resigned and its chief financial officer has been fired amid a criminal investigation into what the organization says is more than $40 million in missing money. “

That’s in the article in the OP ,so really not even indicted or arrested even.

I go back to my original “guess” ,internal audit revealed discrepancies and it was turned over to the feds. the rest is speculation.

[stasu1213]

It’s a corporation established as a 501C,when you donate you get a receipt,and use that receipt to deduct that donation from the taxes you owe ,so the donors did not suffer financial loss.

The sub set of that discussion was White Collar Crime Pays,my response was not always and it depends on the victimization level,Bernie Madoff is in prison because he victimized investors,they weee not donors,but people say the banks were never charged during the melt down and that because people signed on the line for those mortgages.

The allegations so far have been financial crimes,There is $3 million in taxpayer funds but the mayor was quick to point out that part was not affected.

So why would he be so quick to clarify that ?

No charges of breach of trust which donors can possibly bring in a civil suit but at this point until we can see the actual indictment the only thing they alleged was financial crimes,as in an employee stole money from their employer.

What’s strange about it all is,it must be a sealed indictment otherwise it would be public.

“The Detroit Riverfront Conservancy’s CEO has resigned and its chief financial officer has been fired amid a criminal investigation into what the organization says is more than $40 million in missing money. “

That’s in the article in the OP ,so really not even indicted or arrested even.

I go back to my original “guess” ,internal audit revealed discrepancies and it was turned over to the feds. the rest is speculation.

That would trouble me more if it was a sealed indictment and not made public. That could mean money could had been misused and also redirected for other means that could be personal or political. Sure it is all #peculation. However, the CFO getting fired and allegedly making a plea deal speaks volumes. Also let us not compare white collar crimes that had occurred in Macomb and Oakland County to this. That’s an old argument that Detroiters had used in the past. So and so in Livonia or Warren Michigan had done this and that. Lame excuse

[Richard]

I think it leans more to the on going battle in the court of public opinion that everything about Detroit is crap,it’s not an excuse using others as an example nor does it justify it,just highlights that Detroit is really not much different then any other city when it comes to most things.

Harder for Detroit to overcome things because it does at times become Americas whipping post but there are few cities that can claim they are the poster child for anybody,because they all at some point in time that all have faced the exact same issues.

Things like this suck but it’s all part of being a city.

I kinda think the stuff not happening in any city is because it just has not been discovered yet,it’s always there.

[Henry Whalley]

The victims were those whom had donated and the foundations....

Agreed. The claim of Richard l’étron that the crime was victimless is absurd, as per usual.

[stasu1213]

I think it leans more to the on going battle in the court of public opinion that everything about Detroit is crap,it’s not an excuse using others as an example nor does it justify it,just highlights that Detroit is really not much different then any other city when it comes to most things.
I agree

Harder for Detroit to overcome things because it does at times become Americas whipping post but there are few cities that can claim they are the poster child for anybody,because they all at some point in time that all have faced the exact same issues.

Things like this suck but it’s all part of being a city.

I kinda think the stuff not happening in any city is because it just has not been discovered yet,it’s always there.

I agree

[stasu1213]

CRIMINAL COMPLAINT

Wow. Since 2012? If found guilty this guy is toast. Greed is an addiction. You may start out by just taking $100. thinking that it will go unnoticed and you will just replace it in a day or so. Then the borrowing grows into just taking. Then the amount taken increases over a time period. It's a small possibility that he didn't take the money but embezzlement could had happened under his watch which is just as bad

[Henry Whalley]

There's a link to the CRIMINAL COMPLAINT in this article. I tried unsuccessfully to copy it here.

Detroit Riverfront fires CFO William Smith's pal amid $40M scandal. He explains his side

Robert Snell
Chad Livengood
The Detroit News
Published 11:00 p.m. ET June 20, 2024