The Cowboys legend is in hot water after being hit with a lawsuit this week


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Pro Football Hall of Famer Emmitt Smith has been hit with a $2.5 million lawsuit this week that was filed by a Native American investing company in a Delaware court. Smith and one of his business partners are both being accused of cheating the company out of millions after obtaining a loan that was supposed to be for a solar farm project in Texas.

The lawsuit, which was obtained by CBS Texas, was filed by Kituwah, LLC, which is a tribally owned company that looks for possible investment opportunities for the Eastern Band of Cherokee Indians.

What Smith is being accused of doing
The company claims that Smith, the NFL's all-time leading rusher, used his status as the chairman of a company called 4 13 Solutions to land a $2.5 million loan from Kituwah. Smith and his CEO, David Mosley, were supposed to use the money to help Kituwah make an investment in Project Exodus, which was a proposed solar farm in Texas. After the loan went through in 2023, the lawsuit claims that 4 13 Solutions actually used the money to pay off another company, Wilson Holdings, which was run by a man named Darrel Wilson. Kituwah alleges that Smith "had partnered on other ventures" with Wilson and that sending the money to Wilson Holdings created a situation that was "like a Ponzi scheme."

According to Kituwah, the money never should have gone to Wilson Holdings.

"Allegedly, the payment to Wilson Holdings was compensation for prior unsuccessful loans and investments that it made with 4 13 Solutions," the lawsuit states, via The Athletic. "Although the parties had entered into a contract to pay Wilson Holdings if Project Exodus had obtained permanent financing, that condition never came to pass. Smith and Mosley, through 4 13 Solutions, nonetheless misdirected Kituwah's funds to pay Wilson Holdings, all the while representing to Kituwah that they had used the loan proceeds for their proper purpose."

Smith and Mosely made some big promises to get Kituwah to agree to the loan. According to CourtHouse News, Kituwah was told it would get "acquisition of an Energy Department loan for permanent financing and millions in income from the solar farm by the end of 2024."

Mosley has told Kituwah that they had investors lined up on Project Exodus, including one that was willing to finance the entire thing at a valuation of $396 million, according to ESPN.

None of the promises panned out, according to the lawsuit.

Before the loan went through, Kituwah agreed to create a new company called Jabez 4 10. The new company was formed jointly with 4 13 Solutions and Wilson Holdings and the loan was sent to this new LLC, but Kituwah claims they never had access to the money because Smith and Mosely had full control over the account.

There were multiple instances where Kituwah asked to be paid back some or all of the $2.5 million, but Smith and Mosley would "come up with a different excuse" each time for why they weren't able to pay. Smith and Mosley also weren't able to offer any answers for how the money was being used.

"Despite being present on multiple calls where Kituwah asked repeated questions about the [loan and joint venture agreement], neither the principals of 4 13 Solutions nor Wilson Holdings disclosed how the loan proceeds … had really been used," Kituwah wrote in its complaint, via CourtHouse News. "Their lack of disclosure is telling and only further confirms 4 13 Solution's fraudulent intent and the wrongful nature of the payment."

Kituwah claims it hasn't been paid back a single cent and the company wants Smith and 4 13 Solutions to pay back the full $2.5 million along with interest and potential court costs.

The 57-year-old Smith won three Super Bowls during a Hall of Fame career that saw him play 13 of his 15 seasons with the Dallas Cowboys.

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