Texas AG Paxton sues EPIC City developers after probe finds alleged fraud, misleading Muslim-only marketing
In a significant legal move, Texas Attorney General Ken Paxton has filed a lawsuit against the East Plano Islamic Center (EPIC), Community Capital Partners (CCP), and several associated leaders, alleging they orchestrated an illegal securities and land development scheme related to a proposed 400-acre community dubbed “EPIC City.” The lawsuit, lodged in Collin County, stems from a months-long investigation initiated by the Texas State Securities Board, which claims that the defendants raised tens of millions of dollars while violating securities laws. The allegations include misleading investors about the project’s nature and location, misrepresenting the use of funds, and failing to adhere to legal requirements for securities registration.
Paxton’s lawsuit paints a stark picture of the alleged misconduct, with claims that CCP sold investment interests ranging from $40,000 to $80,000 without the necessary registrations or qualifications for federal exemptions. The defendants reportedly solicited investments through various channels, including social media and public meetings, which is prohibited under the claimed exemptions. Additionally, the investigation revealed that the developers did not adequately verify that purchasers were accredited investors, with many lacking proper documentation. The marketing of EPIC City as being “in the heart of Josephine, Texas,” continued even after the city clarified that the land was outside its limits, raising further red flags about the project’s legitimacy.
The lawsuit also highlights troubling promotional strategies, including materials that seemingly targeted Muslim buyers, with early website content referring to EPIC City as the “epicenter of Islam in North America.” Furthermore, the state alleges that CEO Imran Chaudhary had promised to take “not a cent” in salary, yet later secured a contract worth $360,000 annually through a different company, a detail not disclosed in the investment offerings. Paxton is seeking to halt all fundraising related to the project, freeze the defendants’ assets, and impose civil penalties of up to $20,000 for each violation, along with the return of investor funds. This case underscores the ongoing scrutiny of investment schemes and the importance of regulatory compliance in protecting investors and maintaining the integrity of the real estate market in Texas.
Texas Attorney General
Ken Paxton
filed a lawsuit on Friday against the East Plano
Islamic Center
(EPIC), Community Capital Partners (CCP) and several associated leaders, accusing them of running an illegal securities and land development scheme tied to a proposed 400-acre community known as “EPIC City.”
The lawsuit, filed in Collin County, follows a monthslong investigation and a referral from the
Texas State
Securities Board. The state alleges the defendants raised tens of millions of dollars while violating securities laws, misleading investors about the project’s nature and location, and misrepresenting how funds would be used.
“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. “I will relentlessly bring the full force of the law against anyone who thinks they can ignore the rules and hurt Texans.”
According to the Verified Petition, CCP sold investment interests for $40,000 to $80,000, despite failing to register the securities or qualify for federal exemptions.Â
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The state claims the group broadly solicited investors through meetings, social media and online promotions, which is activity not allowed under the exemptions they claimed.
Investigators also allege the developers failed to take reasonable steps to verify purchasers were accredited investors, with documentation missing or inadequate for a number of buyers.
The petition says the project was advertised as being “in the heart of Josephine, Texas,” even after the city told developers in February 2025 that the land was not within its limits or utility district. Marketing materials allegedly continued to make the claim.
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The state further points to alleged promotional materials that appeared to target Muslim buyers, including early website language and videos describing EPIC City as the “epicenter of Islam in North America.”
Paxton’s office also alleges CEO Imran Chaudhary publicly promised he would take “not a cent” in salary, but later signed a contract paying him $360,000 a year through a separate company, a compensation arrangement not disclosed in written offering materials.
Investigators allege more than $1 million in investor funds were withdrawn for general operating expenses, exceeding what offering documents described.
Texas Securities Commissioner Travis Iles claims EPIC entities sold securities without meeting registration or exemption requirements and referred the matter to Paxton after identifying “flagrant” violations.Â
Paxton first announced his investigation in March, and sought the referral in October after uncovering additional concerns.
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Paxton is asking the court to halt all fundraising tied to the project, freeze assets, appoint a receiver, correct public statements and impose civil penalties of up to $20,000 per violation. The suit also seeks the return of investor funds.
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EPIC City, since rebranded as “The Meadow,” was marketed as a master-planned development spanning Hunt and Collin Counties. Court filings show hundreds of investors purchased units.
Fox News Digital has requested comment from EPIC, CCP and Paxton’s office.
The full lawsuit can be
read here
.
