Texas Attorney General Ken Paxton has sued the East Plano Islamic Center, Community Capital Partners and associated leaders, saying they ran an unlawful securities and land development scheme tied to a planned 400-acre community once called EPIC City. The complaint, filed in Collin County, follows a lengthy probe and a referral from state securities regulators. The state alleges investors were misled about the project’s location, how money would be used and the legal status of the investments.
The suit contends the defendants raised tens of millions of dollars while sidestepping registration rules and claiming exemptions they did not qualify for. Documents in the Verified Petition show investment interests were sold for between $40,000 and $80,000. The state says those sales should have been registered or properly exempted under securities laws.
“The leaders behind EPIC City have engaged in a radical plot to destroy hundreds of acres of beautiful Texas land and line their own pockets,” Paxton said. That blunt statement frames the office’s approach: aggressive enforcement and swift court action to stop alleged fraud. The quote underscores a political and legal stance that favors protecting investors and Texas landowners.
According to the petition, Community Capital Partners marketed and sold units without the disclosures required for securities offerings. The allegation is that offering materials left out important facts about compensation, use of proceeds and the true ownership structure. Those omissions, the state argues, deprived buyers of material information needed to evaluate the risk of the investment.
State investigators say the project was actively promoted through meetings, social media and online promotions in ways that go beyond the limited private-offering exemptions the developers claimed. Regulators also found that documentation verifying accredited investor status was missing or inadequate for many purchasers. Failing to confirm accreditation is a core compliance lapse when high-dollar investments are on the line.
Marketing repeatedly touted the project as being “in the heart of Josephine, Texas,” even after the city told developers in February 2025 that the land was not inside its limits or utility district. The petition alleges promotional materials continued to imply municipal ties that did not exist. Misrepresenting location and municipal support is central to the state’s charges.
Early outreach and some promotional content appear to have explicitly appealed to Muslim buyers, with website copy and videos at one point describing the development as the “epicenter of Islam in North America.” The state points to that material as evidence of targeted solicitation, which raises additional legal and ethical questions about how the project was pitched. Targeting a specific community can intensify scrutiny when offering rules are skirted.
The suit also singles out developer leadership on compensation and disclosure. Paxton’s filing notes promises made publicly by CEO Imran Chaudhary that he would take “not a cent” in salary, while later contracts show a $360,000 annual payment routed through a separate company. That contrast between public statements and contractual reality is central to the state’s claims about deceptive practices.
Investigators say more than $1 million in investor funds were withdrawn for general operating expenses in amounts that exceed what offering documents described. Texas Securities Commissioner Travis Iles referred the matter to the attorney general after identifying what his office called “flagrant” violations. Those referrals pushed the case from regulatory inquiry into full legal action.
Paxton is asking the court for a suite of remedies: a halt to all fundraising tied to the project, frozen assets, appointment of a receiver, corrections to public statements, civil penalties up to $20,000 per violation and return of investor funds. The complaint lays out a path for immediate injunctive relief to protect investors while the case proceeds. The remedy list reflects a focus on containment and restitution rather than delay.
The development, once branded EPIC City and later rebranded as “The Meadow,” was promoted as a master-planned community spanning Hunt and Collin counties with hundreds of investors buying units. Court filings indicate sizable participation from private buyers who now face uncertainty about the status and value of their investments. The litigation will test how aggressively Texas enforces securities rules against allegedly deceptive real estate schemes.
