NFL all-time leading rusher Emmitt Smith has been accused of defrauding an investor in a Texas solar energy initiative out of $2.5 million, according to a legal filing.
A lawsuit submitted Monday in Delaware’s Chancery Court alleges the Pro Football Hall of Fame running back and his business partners used funds borrowed from a Native American group to pay off a separate creditor – a tactic the complaint describes as “essentially, like a Ponzi scheme.”
Kituwah LLC, the investment and economic development arm of the Eastern Band of Cherokee Indians, claims it has “not recovered a penny” of the 2023 loan since its due date on Feb. 1, 2024.
The plaintiff states it received a “steady stream of lies” from Smith, business partner David Mosley, and their commercial real estate company, 4 13 Solutions Inc., after investing in the planned Project Exodus solar farm.
According to the filing, Kituwah issued the loan based on “false projections and data” with promises of repayment “in a matter of months.” Instead, the funds were allegedly diverted to co-defendant Wilson Holdings.
The suit alleges fraudulent inducement, breach of fiduciary duty, and breach of contract, seeking at least $2.5 million plus interest, legal fees, expenses, and trial-determined damages.
Attempts by Front Office Sports to reach Smith and the other defendants for comment were unsuccessful.
Smith, 57, won three Super Bowls with the Dallas Cowboys, and was named Super Bowl MVP when the Cowboys beat the Buffalo Bills in 1994.
He finished his career at the Arizona Cardinals, as he retired after the 2004 season with a record 18,355 rushing yards before entering the Hall of Fame in 2010.
