Pro Football Hall of Fame running back Emmitt Smith has been accused of taking part in a scheme that allegedly scammed $2.5 million from a Native American investment firm.
In a lawsuit filed Monday in Delaware’s Court of Chancery, a tribal owned and operated economic developmental agency for the North Carolina-based Eastern Band of Cherokee Indians claimed the former Dallas Cowboys superstar, his longtime business partner David Mosley and their real estate development and renewable energy company 4 13 Solutions Inc. borrowed the money, did not use it for its intended purpose and have not paid it back.
According to the lawsuit, Smith and Mosley convinced the tribal agency, Kituwah LLC, to help their company acquire a proposed solar energy farm in Texas.
“By using false projections and data, misrepresenting the level of interest and potential investments from other investors, making promises that they had no intention of fulfilling, and relying on the participation of other coconspirators, Smith and Mosley induced Kituwah to form a joint venture with their company, 4 13 Solutions, and to loan $2.5 million to the joint venture,” the complaint states.
“Smith and Mosley promised to use the funds to acquire an interest in a renewable energy project in Texas (‘Project Exodus’), transfer that interest back to the joint venture, and ultimately repay Kituwah’s money. But instead, they took the money and used it to improperly pay Wilson Holdings, with whom they had partnered on other ventures.”
Smith, Mosley, 4 13 Solutions, Wilson Holdings and its principal owner, Darrel Wilson, and the group’s joint venture firm, Jabez 4 10 LLC, were named as co-defendants. Representatives for Smith, Mosley and 4 13 Solutions did not immediately respond to requests for comment.
The loan came due on Feb. 1, 2024, according to the complaint, and remains unpaid despite numerous efforts to collect. Smith is accused of fraudulent inducement and breach of fiduciary duty. Seeking the return of its investment as well as interest and other costs and expenses, Kituwah says it is owed more than $3 million.
“Moreover, despite 4 13 Solutions’ representation that Project Exodus would be up and running by the end of 2024, Kituwah has not seen any evidence that Project Exodus has made any meaningful progress towards completion,” the lawsuit states.
“Kituwah commenced an investigation. It has determined that 4 13 Solutions’ representations were part of Smith’s and Mosley’s scheme to cheat Kituwah out of $2.5 million dollars. Instead of using the loan proceeds to acquire Project Exodus as promised, 4 13 Solutions used the $2.5 million to pay Wilson Holdings, apparently for money that Wilson Holdings had previously invested. Essentially, like a Ponzi scheme.”
