Emmitt Smith Accused of Running $2.5M Scheme on Solar Deal

Key Points:

• Pro Football Hall of Famer Emmitt Smith, along with business partner David Mosley and their company 4 13 Solutions Inc., is accused of defrauding Kituwah LLC, a Native American investment group, out of a $2.5 million loan intended for a Texas solar project.
• The lawsuit alleges the defendants misrepresented the project’s prospects, including false claims about partnership status, Department of Energy financing, and project timelines, leading Kituwah to provide the loan based on misleading information.
• Instead of funding the solar project, the money was allegedly diverted to repay a prior investor, Wilson Holdings, in what Kituwah describes as a scheme resembling a Ponzi operation.
• Kituwah has not received any repayment despite the loan being over two years past due, and has incurred additional costs trying to recover the funds; the suit seeks repayment of the principal plus accrued interest exceeding $3 million, along with damages and legal fees.
• The lawsuit, filed in Delaware’s Chancery Court, includes claims of fraudulent inducement, breach of fiduciary duty, and breach of contract, and awaits further developments as representatives for the parties have yet to comment.