Emmitt Smith Accused of Fraud in Texas Solar Energy Deal
Quick Look
NFL all-time leading rusher Emmitt Smith has been accused of defrauding a Native American economic development agency out of $2.5 million in a Texas solar energy project, according to a Delaware lawsuit alleging fraudulent inducement and misuse of funds resembling a Ponzi scheme.
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Why It Matters
Emmitt Smith is the NFL's all-time leading rusher and a Pro Football Hall of Fame member who won three Super Bowls with the Dallas Cowboys. The lawsuit involves a Texas solar energy project called 'Project Exodus' and a loan from Kituwah, an economic development arm of the Eastern Band of Cherokee Indians.
NFL all-time leading rusher Emmitt Smith has been accused of defrauding an investor in a Texas solar energy initiative out of $2.5 million, according to a legal filing.
A lawsuit filed in a Delaware court on Monday alleges the Pro Football Hall of Fame running back and his business associates used funds borrowed from a Native American group to pay off a separate creditor - a tactic the complaint describes as "essentially, like a Ponzi scheme."
Kituwah, a tribally owned economic development agency that seeks opportunities for the Eastern Band of Cherokee Indians, was introduced to Smith and his business partner David Mosley in early 2023 in connection with a potential investment opportunity.
Smith and Mosley “induced” Kituwah to join their commercial real estate company, 4 13 Solutions, in a solar energy farm project in Texas called “Project Exodus” and to loan $2.5 million for the joint venture, the lawsuit alleges.
Smith and Mosley allegedly promised to use the funds toward the joint venture and later repay Kituwah, but the Native American investor claims “it has not recovered a penny” from the loan.
According to the filing, Kituwah issued the loan based on "false projections and data" with promises of repayment "in a matter of months."
Instead, the funds were allegedly diverted to Wilson Holdings of North America, a company owned by Smith and Mosley’s business associate Darrel Wilson.
“Allegedly, the payment to Wilson Holdings was compensation for prior unsuccessful loans and investments that it made with 4 13 Solutions,” the lawsuit read.
The lawsuit alleges fraudulent inducement, breach of fiduciary duty and breach of contract, seeking at least $2.5 million plus interest, legal fees, expenses, and trial-determined damages.
The Independent has reached out to 4 13 Solutions and Kituwah for comment.
Smith, 57, won three Super Bowls with the Dallas Cowboys and was named Super Bowl MVP when the Cowboys beat the Buffalo Bills in 1994.
What to Watch
AI outlook — possibilities, not facts
The lawsuit will proceed to trial or result in a settlement
Likely · Within months
Open Questions
- What was the outcome of the Delaware court filing?
- Have Emmitt Smith or his associates responded to the allegations?
- Is there any evidence of repayment or settlement discussions?
