Smith plead guilty last Tuesday to six charges surrounding his involvement in a multi-state car theft ring. He and 22 others were indicted for stealing over 120 vehicles in Missouri, Iowa, Illinois, and Indiana along with conspiracy and mail fraud.
The release, signed by Craig Mosher, Highland Vice President for Institutional Advancement, said that Smith met with President David Reist regarding the decision.
"For those who are willing, community colleges are about bettering people's situations and helping them improve," Reist said in a statement. "The College will assist Coach Smith through his current situation as he continues as our women's basketball coach, subject to guidelines established for his conduct and subject to the sentencing agreement schedules for July 1."
"Highland Community College has many great instructors, and B.J. Smith is one of those; he just happens to teach basketball to our young women."
The third-year coach spent the best season in the history of the Highland women's basketball program with questions surrounding his future with the team. He led the Scotties to a school record 33 wins and to the NJCAA Division II National Championship Game last month, and 85-73 loss to Mesa.
Smith could not be reached for comment on Wednesday.