Emmitt Smith is accused of misusing a $2.5 million loan given by a Cherokee-led economic development agency to settle a prior debt with a third party.
(CN) — A Native American economic development agency sued former Dallas Cowboys star Emmitt Smith and several business partners Monday in Delaware chancery court, claiming the NFL’s all-time leading rusher defrauded the group out of $2.5 million.
Co-founded by Smith and businessman David Mosley, real estate and energy company 4 13 Solutions purportedly approached Kituwah LLC — a business group owned by the Eastern Band of Cherokee Indians — in early 2023 with a potential investment opportunity.
According to Kituwah, Smith and Mosley suggested the two organizations form a joint venture to invest in a planned solar farm in Texas called “Project Exodus,” claiming Kituwah would need to provide a $2.5 million investment to fund the…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.