NFL career rushing leader Emmitt Smith is facing a lawsuit alleging that he and his business partners misappropriated a $2.5 million loan intended for a wind farm project in Texas. Kituwah LLC, a Native American investment company, filed the suit this week in Delaware, claiming that Smith's company, 4 13 Solutions, used the funds to repay an investor from prior dealings.
Kituwah, which aims to invest in business opportunities for the Eastern Band of Cherokee Indians, alleges that Smith and his longtime business partner, David Mosley, misrepresented their efforts to secure a U.S. Department of Energy loan. The lawsuit states that securing this government loan was a trigger for repaying Kituwah.
According to the suit, Darrel Wilson of Wilson Holdings of North America LLC confirmed receiving a $2.5 million payment from Smith's company but was unsure of the payment's trigger. Kituwah's attorneys described the alleged actions as resembling a Ponzi scheme. The company asserts that Wilson Holdings was only supposed to be repaid after the wind farm project, known as Project Exodus and located between Austin and San Antonio, secured permanent financing.
The lawsuit claims Smith and Mosley were aware of the impropriety. Instead of disclosing the truth, they allegedly told Kituwah that 4 13 Solutions had acquired Project Exodus as planned, but faced unspecified delays. Kituwah contends that Smith and his partners never met the criteria for government funding and offered repeated excuses for the project's lack of progress or stopped responding to inquiries.
Kituwah provided the $2.5 million on September 1, 2023, expecting repayment within months. The lawsuit notes that 4 13 Solutions had projected the wind farm would be operational by December 2024. However, Kituwah claims it saw no evidence of the project's existence just one month prior to that deadline.
Previously, Kituwah stated that Smith and his partners valued the wind farm project at $396 million, anticipating nearly $14 million in net income in its first year. The lawsuit indicates the loan has accrued approximately $600,000 in interest, and Kituwah is seeking jury-determined damages. As of the filing, no attorney for Smith or his company was listed, and a message to 4 13 Solutions was not immediately returned.
Smith, 57, spent the majority of his 15-season NFL career with the Dallas Cowboys, where he won three championships and was named MVP of Super Bowl XXVIII. He surpassed Walter Payton's rushing record in 2002, finishing his career with 18,355 rushing yards.