Emmitt Smith accused of fraud in lawsuit over $2.5M Texas solar deal – nbcdfw.com

Former Dallas Cowboys star Emmitt Smith and several of his business partners are accused in a new civil lawsuit of misleading a tribal economic development entity into providing $2.5 million for a Texas solar project, then using the money for a different purpose.
A lawsuit was filed Aug. 31 by tribally owned economic development organization Kituwah LLC. Kituwah invests on behalf of the Eastern Band of Cherokee Indians.
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The complaint names Smith, David Mosley, their Dallas-based company 4 13 Solutions Inc., Darrel Wilson and Wilson Holdings of North America LLC as defendants. It alleges Smith and Mosley induced Kituwah to participate in a joint venture involving a proposed solar farm known as Project Exodus by making false or misleading representations about the project’s progress, financing, potential investors and expected returns.
The allegations have not been proven in court. NBC 5 has reached out to those named in the suit for comment and has not received a response.
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According to the lawsuit, Smith and Mosley introduced Kituwah to a proposed Texas solar development known as Project Exodus in 2023. A project summary described the solar farm as 4 13 Solutions’ “flagship project,” expected to begin operating by the end of 2024 and generate nearly $13.8 million in first-year net income.
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Kituwah alleges it agreed to partner with 4 13 Solutions and Wilson Holdings through a new company, Jabez 4 10 LLC, to acquire interests in the project. In September 2023, Kituwah loaned Jabez $2.5 million, with the understanding that the money would help acquire GCI’s rights and ownership interests in the development.
After the money was transferred, 4 13 Solutions told Kituwah that the full $2.5 million had been paid to GCI, according to the complaint. Kituwah alleges it never received documentation confirming that payment or the promised transfer of project interests.
In the lawsuit, Kituwah says it later discovered the money had instead been paid to Wilson Holdings, which had previously provided funding to 4 13 Solutions.
An agreement did provide for Wilson Holdings to receive $2.5 million, but only after Jabez obtained permanent financing for Project Exodus. Kituwah alleges that financing was never secured. The complaint says Wilson later told Kituwah’s attorneys he did not believe permanent financing had been received and did not know what triggered the payment to his company.
The lawsuit accuses Smith individually of fraudulent inducement and breach of fiduciary duty. It points to emails Smith allegedly sent during negotiations, including one saying a bridge loan from Kituwah was “crucial to our success and our brand.”
The $2.5 million loan was due by Feb. 1, 2024. Kituwah alleges none of the principal has been repaid and says it repeatedly sought payment before filing suit.
Kituwah is seeking at least $2.5 million in damages, plus interest, costs and other amounts that could be determined at trial.

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