Full Breakdown
Emmitt Smith Sued Over $2.5 Million Texas Solar Project
9/5/2026, 9:13:02 PM
Alleged Misuse of Tribal Investment
A Delaware Court of Chancery lawsuit filed this week accuses former Dallas Cowboys running back Emmitt Smith, his longtime business partner David Mosley, and their firm 4 13 Solutions Inc. of diverting a $2.5 million loan from Kituwah LLC, the economic-development arm of the Eastern Band of Cherokee Indians. Kituwah alleges the money was intended to fund “Project Exodus,” a proposed solar farm in Caldwell County, Texas, but was instead paid to Wilson Holdings of North America, owned by Darrel Wilson, which had previously invested with 4 13 Solutions. The complaint characterizes the transaction as “essentially, like a Ponzi scheme.”
Background of Project Exodus
Kituwah began discussions with 4 13 Solutions and Wilson Holdings in early 2023, forming a joint venture called Jabez 4 10 LLC to acquire an interest in the solar farm. The parties sought a U.S. Department of Energy loan for permanent financing. Kituwah delivered the $2.5 million loan in September 2023 with the expectation of repayment “in a matter of months.” The loan was scheduled to mature in early February 2024, but Kituwah reports no repayment and no evidence that the farm was ever built.
Financial Claims and Projections
- Loan amount: $2.5 million.
- Accrued interest: Approximately $600,000, based on a 12 % annual rate, bringing the balance to about $3.1 million.
- Projected project valuation: $396 million (as presented to Kituwah).
- Projected first-year net income: Reported as “nearly $14 million” in some filings and “about $13.8 million” in others, indicating a discrepancy among source statements.
Kituwah’s Allegations and Legal Claims
Kituwah’s complaint alleges several specific violations:
1. Fraudulent inducement – Smith and Mosley allegedly misrepresented the status of Project Exodus, claiming the farm would be operational by the end of 2024 and that other investors were ready to fund the venture.
2. Breach of fiduciary duty – The defendants are accused of directing the loan proceeds to Wilson Holdings instead of the joint-venture account, despite having full control over the funds.
3. Breach of contract – An agreement stipulated that Wilson Holdings would receive payment only after permanent Department of Energy financing was secured; Kituwah says that condition never occurred.
The lawsuit seeks repayment of the principal, accrued interest, costs, and any additional damages the jury may determine.
Discrepancies in Reported Projections
Source reports differ on the expected first-year net income from Project Exodus. Some articles cite “nearly $14 million,” while others list “about $13.8 million.” Both figures are presented as projections made to Kituwah, highlighting an inconsistency in the financial representations provided by the defendants. No source offers a definitive, verified estimate.
Verbatim Quotes
- “Despite being present on multiple calls where Kituwah asked repeated questions about the [loan and joint venture agreement], neither the principals of 4 13 Solutions nor Wilson Holdings disclosed how the loan proceeds … had really been used,”
What’s Next
The case will proceed through Delaware’s court system. Kituwah has indicated willingness to waive accrued interest if repayment occurs by the end of August 2025, but no settlement has been reported. Neither Smith nor his representatives have responded to requests for comment. The litigation may influence how tribal economic-development agencies evaluate future joint ventures with celebrity-backed firms.
