A Native American development group is suing Pro Football Hall of Famer Emmitt Smith and his company, alleging it was defrauded out of $2.5 million as part of a deal to purchase a solar farm, according to court documents.
The filing, posted on Courthouse News and filed in the Delaware Court of Chancery, alleges Smith, the chairman of 4 13 Solutions, and company CEO David Mosley committed fraudulent inducement and breach of fiduciary duty by promising to use a $2.5 million loan from Kituwah, LLC, to obtain an interest in "Project Exodus," a solar farm project in Texas.
Instead, the lawsuit claims, Smith, Mosley and 4 13 Solutions used the money to pay a third company, Wilson Holdings, as "compensation for prior unsuccessful loans and investments that it made with 4 13 Solutions." The contract between 4 13 and Kituwah said Wilson Holdings would be paid only if the project received long-term financing from the Department of Energy for acquiring and operating Project Exodus.
Hall of Famer Emmitt Smith is accused in a lawsuit of defrauding a Native American development group. Matthew Emmons/USA TODAY Sports According to the lawsuit, long-term financing was not secured, and the money was used to pay Wilson Holdings instead of purchasing Project Exodus.
The filing, which lists Smith, Mosley, 4 13 Solutions, Wilson Holdings and its owner, Darrel Wilson, as defendants, claims the transaction was "essentially, like a Ponzi scheme." According to the lawsuit, Wilson told Kituwah attorneys he did not know what triggered his company to receive the $2.5 million payment to his company, but he did not believe permanent financing had been secured.
Andrew Moore, one of Kituwah's attorneys, declined comment to ESPN on Tuesday. Messages left with 4 13 Solutions on its website and with its main officers, including Smith, were not immediately returned to ESPN.
Kituwah and 4 13 began speaking about Project Exodus in early 2023, according to the lawsuit, with expectations it would be operational by the end of 2024.
They created a separate company -- Jabez 4 10 -- for the venture and planned on applying for the Department of Energy loan available to Native American tribes, the filing says. The lawsuit also lists Jabez 4 10, partially managed by 4 13 Solutions representatives, as a defendant.
The lawsuit alleges 4 13 Solutions sent updates to Kituwah about the loan application and the investment throughout the summer of 2023, including an alternative financing option if the Department of Energy loan was not granted. At the same time, the lawsuit claims Smith emailed Kituwah a request for a bridge loan to help fund commitments to buy Project Exodus.