- Details
- By Tribal Business News Staff
- Policy and Law
Kituwah Energy Project #2 LLC, an Eastern Band of Cherokee Indians-owned company, has sued Pro Football Hall of Famer Emmitt Smith and five co-defendants, alleging they diverted a $2.5 million tribal loan intended for a Texas solar development.
The lawsuit, filed Aug. 31 in the Delaware Court of Chancery, alleges Smith, business partner David Mosley and their company, 4 13 Solutions Inc., induced Kituwah to provide the financing.
According to the complaint, Kituwah loaned $2.5 million to Jabez 4 10 LLC, a joint venture formed to acquire and develop Project Exodus, a proposed solar farm between Austin and San Antonio.
Kituwah claims the defendants used false projections — projecting that the project would enter service by Dec. 31, 2024, and generate $13.8 million in first-year net income — and misrepresented their ability and intention to obtain permanent financing, including a proposed Department of Energy loan.
After Kituwah issued the $2.5 million loan in September 2023, Smith and Mosley allegedly diverted the proceeds to Wilson Holdings, even though the contractual condition authorizing that payment had not been met. Kituwah alleges this violated a side agreement stipulating that Wilson Holdings would only receive payment after the project secured permanent financing.
The solar project never obtained long-term funding, and the note matured in February 2024 without repayment.
