Emmitt Smith Sued in Delaware Over $2.5M Solar Investment
Emmitt Smith Sued in Delaware Over $2.5M Solar Investment
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Key Points
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The funds from Kituwah were routed into a Delaware-registered entity called Jabez 4 10, created by 4 13 Solutions and Wilson Holdings, with Emmitt Smith and David Mosley allegedly maintaining sole control over Jabez’s accounts and taking the proceeds themselves.
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Kituwah and 4 13 Solutions purportedly formed a joint venture for the loan, with promises to transfer the solar project’s interest back to the joint venture and eventually repay Kituwah.
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The suit alleges the $2.5 million loan was used to pay debt to Wilson Holdings, a company tied to Darrel Wilson, which had previously partnered with Smith/4 13 Solutions; the payout was described as repayment for prior investments.
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The Delaware Chancery Court case cites fraudulent inducement, breach of fiduciary duty, and breach of contract; Kituwah contends it has not recovered any funds and the loan accrued more than $600,000 in interest.
NFL Hall of Famer Emmitt Smith is facing a Delaware lawsuit accusing him and business partner David Mosley of defrauding Kituwah LLC, the Cherokee tribal investment arm, out of $2.5 million in a Texas solar project scheme. CBS Sports reports the suit alleges the pair ran what amounted to a Ponzi-like operation, using the 2023 loan to repay other debts instead of funding the solar farm. The loan remains unpaid since February 1, 2024, and has accrued over $600,000 in interest with no funds recovered.
Kituwah claims Smith and Mosley funneled the money through a Delaware entity called Jabez 4 10 using false projections and manipulative inducements. Archynetys reports the lawsuit alleges fraudulent inducement, breach of fiduciary duty, and breach of contract. Smith and his representatives have made no public comments about the case.
How the $2.5M Solar Loan Allegedly Disappeared
Kituwah provided a $2.5 million loan in 2023 intended for Project Exodus, a Texas solar farm. Bisnow reports the funds were routed through Jabez 4 10, a Delaware-registered entity controlled by Smith and Mosley. The suit claims the money never reached the solar project. Instead, it was used to repay debt owed to Wilson Holdings, a company previously partnered with Smith's firm 4 13 Solutions.
Smith and Mosley allegedly maintained sole control over Jabez's bank accounts and pocketed the proceeds themselves. The lawsuit describes this structure as part of a fraudulent joint venture scheme designed to deceive Kituwah about the loan's actual use and the project's viability.
Solar Project Has Stalled With Zero Progress
Project Exodus, the Texas solar farm at the center of the deal, has seen little to no meaningful progress, according to Kituwah's complaint. The suit alleges the Cherokee investment firm was promised the project would generate returns and that interest in the solar assets would be transferred back to their joint venture. None of those promises materialized.
The $2.5 million principal remains unpaid. Since the February 1, 2024 due date passed, the debt has ballooned to over $600,000 in accrued interest. The Press reports that Kituwah has recovered zero funds from the investment to date.
Kituwah Seeks $2.5M Plus Interest and Damages
The lawsuit, filed in Delaware Chancery Court, seeks at least $2.5 million in damages plus the $600,000-plus in accrued interest. Kituwah also demands additional damages to be determined at trial, along with attorneys' fees and court costs. The suit names Smith, Mosley, 4 13 Solutions, and other affiliated entities as defendants.
The claims include fraudulent inducement, breach of fiduciary duty, and breach of contract. Mahoning Matters reports Kituwah alleges Smith and his partners used false projections and misleading representations to secure the loan. Smith has not publicly responded to the allegations or the lawsuit.
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