Emmitt Smith / Kituwah $2.5 Million Solar Fraud Lawsuit Explained

NFL Hall of Famer Emmitt Smith is facing a civil fraud lawsuit from a company owned by the Eastern Band of Cherokee Indians over a $2.5 million investment in a proposed Texas solar project. Kituwah Energy Project #2 LLC alleges that Smith, business partner David Mosley and their company 4 13 Solutions Inc. persuaded it to fund a joint venture called Jabez 4 10 LLC, then diverted the money to repay an earlier investor instead of using it as represented for the solar development. The lawsuit describes the alleged arrangement as operating “essentially, like a Ponzi scheme.” Smith and the other defendants had not filed substantive responses to the allegations when the lawsuit became public, and no court has found that Smith committed fraud.

Kituwah Sues Emmitt Smith

Kituwah Energy Project #2 LLC sued Smith and five other defendants on August 31, 2026. The lawsuit was filed in the Delaware Court of Chancery and names Smith, David Mosley, 4 13 Solutions Inc., Darrel Wilson, Wilson Holdings of North America LLC and Jabez 4 10 LLC. [Tribal Business News] [Law360]

Kituwah Energy Project #2 is connected to the Eastern Band of Cherokee Indians. It is an affiliate of Kituwah LLC, the economic-development company owned by the Eastern Band of Cherokee Indians. Kituwah invests in businesses and projects intended to diversify tribal revenue beyond gaming. [Bloomberg Law] [Tribal Business News]

The lawsuit accuses the defendants of fraudulently inducing Kituwah to provide $2.5 million. Kituwah alleges that Smith, Mosley and their associates made false or misleading representations about a proposed Texas solar-development project and how Kituwah’s money would be used. [Courthouse News] [Front Office Sports]

Project Exodus

The investment centered on a proposed solar development known as Project Exodus. The project was described as a utility-scale solar and battery-storage development planned for Caldwell County, Texas, between Austin and San Antonio. [Tribal Business News] [Chron]

Smith and Mosley allegedly approached Kituwah about the project in early 2023. According to the complaint, their company 4 13 Solutions proposed that Kituwah participate in a joint venture that would acquire and develop Project Exodus. [Courthouse News]

Kituwah says it was told the project could generate millions of dollars. The complaint alleges that projections supplied to Kituwah predicted approximately $13.8 million in net income during the solar project’s first year of operation. [Tribal Business News] [Front Office Sports]

Kituwah alleges it was told the solar farm would be operating by the end of 2024. The complaint says the defendants projected that Project Exodus would enter service by December 31, 2024. Kituwah now alleges that it has seen no evidence of meaningful progress toward completion of the development. [Tribal Business News]

Jabez 4 10 Joint Venture

The parties created Jabez 4 10 LLC to pursue the project. Kituwah, 4 13 Solutions and Wilson Holdings formed the joint venture in September 2023. Kituwah received the largest ownership position while 4 13 Solutions and Wilson Holdings received smaller interests. [Courthouse News] [Front Office Sports]

Smith and Mosley allegedly served as managers of Jabez 4 10. Kituwah claims that despite its ownership interest, it was later denied meaningful participation in management and has not been given adequate visibility into the joint venture’s finances. [Courthouse News]

Kituwah loaned Jabez 4 10 $2.5 million in September 2023. The secured promissory note carried 12 percent annual interest and was scheduled to mature on February 1, 2024. [Chron] [Front Office Sports]

Department Of Energy Financing Claims

Kituwah says it was told permanent financing would eventually replace its short-term loan. According to the lawsuit, Smith and his business partners represented that the project would obtain long-term financing, including the possibility of financing through the U.S. Department of Energy. [Courthouse News] [Tribal Business News]

The permanent financing allegedly never materialized. Kituwah says Project Exodus never received the anticipated Department of Energy financing or substitute private financing. [Courthouse News]

The lawsuit alleges Kituwah was therefore never repaid as promised. The $2.5 million note matured in February 2024, but Kituwah says it has not recovered any of the principal. [Front Office Sports]

Alleged Diversion Of The $2.5 Million

Kituwah alleges the most important representation about the loan was false. The company says it believed its $2.5 million would be used to acquire rights and interests connected to Project Exodus from Genesis Consolidated Industries, the company involved with acquiring land for the development. [Courthouse News] [Front Office Sports]

Instead, Kituwah alleges the entire $2.5 million went to Wilson Holdings. According to the complaint, the funds were used to repay Wilson Holdings for money it had previously invested in ventures involving Smith and Mosley. [Bloomberg Law] [Front Office Sports]

Kituwah says the payment violated an agreement governing when Wilson Holdings could be repaid. A side agreement allegedly provided that Wilson Holdings would receive the $2.5 million only after Jabez 4 10 obtained permanent financing for Project Exodus. Kituwah alleges that condition had not occurred when Wilson Holdings received the money. [Tribal Business News]

Kituwah alleges the rights it expected to acquire were never transferred. According to the complaint, the $2.5 million did not result in Jabez 4 10 obtaining the promised Project Exodus interests. [Front Office Sports]

“Essentially, Like A Ponzi Scheme”

Kituwah compared the alleged use of its money to a Ponzi scheme. The lawsuit argues that money supplied by a new investor was used to satisfy obligations to an earlier investor rather than for the purpose represented to Kituwah. [Courthouse News] [Bloomberg Law]

The lawsuit does not allege that Smith was operating a conventional investment Ponzi scheme. The phrase is Kituwah’s comparison for the alleged movement of its $2.5 million to an earlier business partner. The case is a civil fraud and contract dispute, and the allegations have not been proven in court. [Front Office Sports]

Kituwah Says It Was Shut Out

Kituwah alleges it lost control of the joint venture despite being a major investor. The complaint says 4 13 Solutions effectively excluded Kituwah from managing Jabez 4 10 and failed to provide the financial information expected under the parties’ agreement. [Courthouse News]

Kituwah says Smith and Mosley repeatedly offered explanations for why repayment had not occurred. The lawsuit alleges that the men provided different excuses as Kituwah repeatedly requested repayment of its loan. [Front Office Sports]

The complaint alleges Smith and Mosley eventually stopped participating in scheduled calls. Kituwah says communication deteriorated after its repeated efforts to recover the investment. [Front Office Sports]

Wilson Holdings Payment

Wilson Holdings was both an investor in the venture and the recipient of the disputed $2.5 million payment. The company and its principal Darrel Wilson are named as defendants in the lawsuit. [Tribal Business News]

Kituwah alleges Wilson himself later questioned what allowed his company to receive the money. According to the complaint, Wilson told investigators he did not believe permanent financing had been obtained and was uncertain what event had triggered the repayment to his company. [Front Office Sports]

Kituwah argues that the undisclosed payment supports its fraud allegations. It alleges that neither 4 13 Solutions nor Wilson Holdings revealed the actual disposition of the loan proceeds when Kituwah repeatedly asked about its investment. [Courthouse News]

More Than $3 Million Allegedly Owed

Kituwah says nearly $600,000 in interest had accrued by August 2025. With the original $2.5 million principal and approximately $598,836 in interest, the claimed balance had risen to roughly $3.1 million. [Front Office Sports] [Chron]

Kituwah says it offered to waive some interest in exchange for repayment. According to the complaint, Kituwah proposed a forbearance arrangement under which default interest would be waived if the principal was repaid by August 31, 2025. Kituwah says the proposal was effectively ignored. [Front Office Sports]

The lawsuit seeks at least $2.5 million plus additional relief. Kituwah is seeking repayment of the principal, interest, costs, expenses, attorneys’ fees and other damages the court determines are appropriate. [Bloomberg Law] [Front Office Sports]

Claims Against Emmitt Smith And His Partners

Kituwah’s lawsuit contains six causes of action. Reporting on the complaint identifies claims including fraudulent inducement, breach of fiduciary duty and breach of contract. [Front Office Sports]

The complaint alleges Smith personally participated in the representations that persuaded Kituwah to invest. Kituwah does not merely sue Smith because he was associated with 4 13 Solutions; it alleges that Smith and Mosley personally participated in discussions and representations surrounding the investment. [Courthouse News] [Bloomberg Law]

The allegations remain unproven. The lawsuit represents Kituwah’s account of the transactions, and filing a civil complaint does not establish that Smith or any other defendant committed fraud or breached their legal duties. [Tribal Business News]

What Is 4 13 Solutions?

Smith co-founded 4 13 Solutions with David Mosley. The company describes itself as an energy-solutions and commercial real-estate platform. Smith is the company’s co-founder and Mosley serves as chief executive officer. [4 13 Solutions]

The company has continued announcing energy-related financing deals. In February 2026, 4 13 Solutions announced a $17.2 million structured-finance transaction involving Pathward and described itself as an energy and development platform founded by Smith and Mosley. That transaction is separate from the Kituwah lawsuit. [4 13 Solutions]

Emmitt Smith’s Earlier Ponzi Scheme Lawsuit

Smith is separately a plaintiff in an unrelated lawsuit in which he says he was the victim of an alleged Ponzi scheme. Smith and businessman Mark Page sued Traders Domain FX and several individuals over at least $500,000 they say they invested based on false representations about foreign-currency trading returns. [Fort Worth Star-Telegram]

Smith’s lawsuit alleges Traders Domain displayed investment returns that did not actually exist. Smith and Page say they were unable to access their money and later discovered undisclosed commissions and allegedly fictitious earnings. [Fort Worth Star-Telegram]

The Traders Domain case is unrelated to Kituwah’s allegations against Smith. In the Traders Domain litigation, Smith is an investor alleging that other parties defrauded him. In the Kituwah case, Smith is a defendant accused of participating in fraud involving a separate investment and business venture. [Fort Worth Star-Telegram] [Bloomberg Law]