Texas Attorney General Paxton files lawsuit against EPIC City developers following investigation uncovering suspected fraud and deceptive Muslim-only advertising.

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, alleging an illegal securities and land development scheme tied to a proposed 400-acre project known as "EPIC City."

The legal action, submitted in Collin County, follows an extensive investigation and a referral from the Texas State Securities Board. Authorities claim the defendants raised tens of millions of dollars while violating state securities laws, providing misleading information about the projects location, purpose, and intended use of funds.

"The leaders behind EPIC City have engaged in a scheme that risks hundreds of acres of Texas land while benefiting themselves financially," Paxton stated. "I will use every legal tool available to hold accountable anyone who disregards the law and harms Texans."

The Verified Petition notes that CCP sold investment stakes ranging from $40,000 to $80,000 without registering the securities or qualifying for federal exemptions. The state alleges the developers broadly solicited investors through meetings, social media, and online campaigns, which exceeded the scope of any claimed exemptions.

Investigators further claim the developers did not adequately verify that purchasers were accredited investors, with documentation missing or insufficient for several buyers. Marketing materials reportedly promoted the project as located "in the heart of Josephine, Texas," despite the city notifying developers in February 2025 that the property was outside city limits and not part of its utility district. Promotional content allegedly continued to make this claim.

Additionally, the lawsuit highlights marketing aimed specifically at Muslim investors, with early website content and videos describing EPIC City as the "epicenter of Islam in North America." The state also alleges CEO Imran Chaudhary publicly promised not to take a salary but later arranged a $360,000 annual payment through a separate company, not disclosed in offering documents.

Investigators report that more than $1 million in investor funds were diverted for general operational expenses, exceeding what had been outlined in official documents. Texas Securities Commissioner Travis Iles noted that EPIC entities sold securities without meeting registration or exemption requirements, referring the case to Paxton after identifying major violations.

Paxton initially announced the investigation in March and requested a formal referral in October after uncovering further concerns. The lawsuit seeks to halt all fundraising for the project, freeze assets, appoint a receiver, correct public statements, impose civil penalties up to $20,000 per violation, and secure the return of investor funds.

The development, now rebranded as "The Meadow," was marketed as a large-scale, master-planned community spanning Hunt and Collin counties. Court documents indicate that hundreds of investors purchased units in the project.

Author: Noah Whitman