Lawsuit alleges diversion of tribal funds
NFL Hall of Famer Emmitt Smith is facing a $2.5 million lawsuit filed in Delaware by Kituwah, an investment agency for the Eastern Band of Cherokee Indians, over a failed solar energy project in Texas. The complaint, filed August 31, 2026, accuses Smith and two business partners of obtaining the money under false pretenses and using it for purposes unrelated to the project.
According to the lawsuit, as reported by CBS News Texas, Smith and longtime business partner David Mosley, along with Darrel Wilson, secured the loan from Kituwah in 2023 under the pretense of acquiring an interest in a solar and battery storage venture called Project Exodus, planned for Caldwell County, Texas. Kituwah, headquartered in Cherokee, North Carolina, invests in business opportunities for the Eastern Band of Cherokee Indians.
The case centers on a $2.5 million loan provided in September 2023 through a joint venture between Kituwah and 4 13 Solutions, a company associated with Smith and Mosley. The loan carried a 12% annual interest rate and was due February 1, 2024. Kituwah says that deadline passed without repayment.
What Kituwah alleges
Kituwah's complaint alleges that instead of using the funds to acquire Project Exodus, Smith and Mosley directed the money to Wilson Holdings, a company owned by Darrel Wilson. The suit claims the payment was compensation for Wilson's earlier unsuccessful loans and investments with 4 13 Solutions, while Smith and Mosley continued to assure Kituwah the funds were being used properly.
The lawsuit also claims Smith and Mosley pressured Kituwah into the deal by inventing false offers from other investors, suggesting the company they sought to invest in was ready to walk away. These alleged false offers led Kituwah to form a new Delaware-based limited liability company, Jabez 4 10 LLC, alongside 4 13 Solutions and Wilson Holdings, with the loan funds directed to that entity.
Kituwah further claims that 4 13 Solutions had sole access to and total control over Jabez's accounts through Smith and Mosley, and that the pair took the proceeds. The complaint alleges the original deal relied on false projections and data, and that the project never produced the expected returns—projections had suggested the project could generate nearly $14 million in net income in its first year, with operations expected to begin by December 31, 2024.
According to the lawsuit, Kituwah says it has not recovered any money from the loan and was given a "steady stream of lies" about the project as it sought explanations for the missing funds. The complaint also says the defendants did not explain how the loan proceeds were used despite repeated questions.
In a strongly worded description, Kituwah's complaint likens the alleged arrangement to "essentially, like a Ponzi scheme," according to both CBS News Texas and The Times of India. The lawsuit seeks at least $2.5 million in damages, plus interest, costs, expenses, and attorney's fees. The Times of India reported, citing Front Office Sports, that nearly $600,000 in interest had accumulated on the loan by September 1, 2026, potentially pushing the total above $3 million.
Smith's response and legal status
As of the reporting, Smith, who last played for the Dallas Cowboys in 2004, had not publicly responded to the allegations. CBS News Texas said it was working to reach Smith for comment. The lawsuit remains pending, and no court has found Smith liable for fraud or wrongdoing.
The case is one of several business disputes involving Smith, who has been involved in various ventures since retiring from football. However, this lawsuit specifically alleges a prolonged and deliberate scheme, with Kituwah's complaint detailing what it claims was a pattern of deception over nearly two years.
The legal proceedings are unfolding in Delaware, where Jabez 4 10 LLC was incorporated. The case continues as parties await further court action.