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Emmitt Smith accused of defrauding solar investor out of $2.5m

NFL legend Emmitt Smith has been accused in a lawsuit of defrauding a Native American investor out of $2.5 million in a Texas solar project. The complaint alleges the funds were diverted and compares the operation to a Ponzi scheme.

  • Lawsuit filed in Delaware's Chancery Court alleges Emmitt Smith and partners defrauded Kituwah LLC out of $2.5 million.
  • Kituwah LLC, an arm of the Eastern Band of Cherokee Indians, says it has not recovered any of the 2023 loan.
  • The complaint describes the alleged use of funds as 'essentially, like a Ponzi scheme.'

NFL all-time leading rusher Emmitt Smith has been accused of defrauding an investor in a Texas solar energy project 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 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 says it received a "steady stream of lies" from Smith, business partner David Mosley, and their company, 4 13 Solutions Inc., after investing in the planned Project Exodus solar farm.

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 to reach Smith and the other defendants for comment were unsuccessful.

Why this matters: The lawsuit involves a prominent sports figure and alleges financial misconduct against a Native American investment group, potentially affecting trust in celebrity-backed ventures.

What this means for you: If you are considering investing in celebrity-endorsed projects, this case highlights the importance of verifying financial claims and legal risks.

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