NFL legend Emmitt Smith is facing accusations of defrauding a Native American tribe's investment arm out of $2.5 million in an alleged solar project scheme. The lawsuit, filed in Delaware by Kituwah LLC, the economic development arm of the Band of Cherokee Indians, claims the tribe was convinced by Smith, his business partner David Mosley, and their company 4 13 Solutions Inc. to loan the money for a solar farm project.
Kituwah LLC alleges that the loan, made in early 2023, is now more than two years past due and that the tribe has "not recovered a penny." The suit further claims the funds were misrepresented and diverted to pay back another company, Wilson Holdings, which had previously invested in a venture with Smith and his partners.
The lawsuit, seeking at least $2.5 million plus interest and damages, labels the entire endeavor a "ploy" and describes Kituwah being fed a "steady stream of lies" regarding the solar farm project, named Project Exodus. The tribe was reportedly told it would be a partner, receive funding from the U.S. Department of Energy, and that the solar farm would be operational by 2024. However, Kituwah alleges the loan was made based on "false projections and data," with promises of repayment within months.
Kituwah describes the alleged scheme as "essentially, like a Ponzi scheme." According to the complaint, the tribe's investigation into the loan's whereabouts revealed the diversion of funds to Wilson Holdings. The lawsuit states that despite Kituwah's repeated inquiries, Smith's company and Wilson Holdings failed to disclose the true use of the loan proceeds, which Kituwah argues "only further confirms 4 13 Solutions’ fraudulent intent."
Emmitt Smith, 57, played in the NFL until 2004 and was a key member of the Dallas Cowboys teams that won three Super Bowls in the 1990s.