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 investmentsthat 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.
He finished his career at the Arizona Cardinals, retiring after the 2004 season with a record 18,355 rushing yards before entering the Hall of Fame in 2010.
