3 minSports
Emmitt Smith sued over alleged $2.5M solar investment scheme
Pro Football Hall of Fame running back Emmitt Smith is accused in a Delaware lawsuit of defrauding a Native American investment entity out of $2.5 million in a solar farm deal that allegedly operated like a Ponzi scheme.
Pro Football Hall of Fame running back Emmitt Smith has been accused of defrauding a Native American investment group out of $2.5 million in connection with a solar farm project, according to a lawsuit filed Monday in Delaware.
The complaint was brought by Kituwah LLC, the investment and economic development arm of the Eastern Band of Cherokee Indians. Kituwah alleges it loaned $2.5 million to Smith, his business partner David Mosley, and their real estate company, 413 Solutions Inc., after being persuaded to join a venture called Project Exodus solar farm. The loan is now more than two years past due, and Kituwah says it has not received a single payment.
According to the lawsuit, Kituwah invested with the understanding that it would be named a partner in the project and that the U.S. Department of Energy would also provide funding. Instead, the suit claims, the money was diverted to pay back a separate company that had previously invested in the project. Kituwah alleges it was given false projections and data before making the loan, which it says was supposed to be repaid within months.
The lawsuit describes the arrangement as being "essentially, like a Ponzi scheme." Kituwah says it conducted an investigation and traced the funds to Wilson Holdings, a firm that Smith and the other defendants have partnered with on separate investments. The group is seeking at least $2.5 million in damages, plus interest, costs, and expenses determined at trial.
"Kituwah poured substantial time, efforts, and resources in the purported joint venture," the suit states. "Not only has Kituwah not seen any returns on its investment, Kituwah has been forced to expend additional costs in efforts to reclaim the amounts it is still owed pursuant to its investment, including to investigate what happened to its money."
Smith, 56, is widely regarded as one of the greatest running backs in NFL history. He is the league's all-time leading rusher with 18,355 career yards, a record he set during 13 seasons with the Dallas Cowboys before finishing his career with two seasons for the Arizona Cardinals. Smith won three Super Bowls with the Cowboys and holds league records for career rushing touchdowns with 164 and rushing first downs with 1,028. He was inducted into the Pro Football Hall of Fame in 2010.
The lawsuit adds to a series of legal troubles involving former professional athletes accused of financial misconduct. The case is pending in Delaware court, and no trial date has been set. Representatives for Smith and 413 Solutions have not yet filed a response to the allegations.
