Texas AG Ken Paxton sues EPIC City developers over alleged illegal land scheme

Texas Attorney General Ken Paxton filed a lawsuit Friday against the Islamic Center of East Plano (EPIC), Community Capital Partners (CCP) and several related leaders, accusing them of operating an illegal securities and land development scheme tied to a proposed 400-acre community known as “EPIC City.”

The lawsuit, filed in Collin County, followed a months-long investigation and guidance from the Texas State Securities Board. The state alleges the defendants raised tens of millions of dollars by violating securities laws, misleading investors about the nature and location of the project, and misrepresenting how the funds would be used.

“The leaders behind EPIC City have embarked on a radical conspiracy to destroy hundreds of acres of beautiful Texas land and line their own pockets,” Paxton said. “I will use the full force of the law relentlessly against anyone who thinks they can ignore the rules and harm Texans.”

According to the Verified Petition, CCP sold investment shares for between $40,000 and $80,000 despite not registering the securities or qualifying for federal exemptions.

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The state alleges the group solicited investors widely through meetings, social media and online promotions, and that this was not allowed under the exemptions they claimed.

Investigators also allege developers failed to take reasonable steps to verify buyers were accredited investors, with documentation missing or inadequate for some buyers.

The petition states that the project was promoted as being “in the heart of Josephine, Texas” even after the city told developers in February 2025 that the land was not within its boundaries or service area. Marketing materials allegedly continued to push the claim.

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People come to a mosque in Plano, Texas, to attend Friday prayers. (Ronaldo Schemidt/AFP via Getty Images)

The state also points out promotional materials that allegedly target Muslim buyers, including initial website language and videos describing EPIC City as “the epicenter of Islam in North America.”

Paxton’s office also alleges that CEO Imran Chaudhary publicly promised he wouldn’t take “not a penny” of his salary, but then signed a contract paying him $360,000 a year through a separate company, a compensation arrangement that was not disclosed in written offer materials.

Investigators allege more than $1 million in investor funds were withdrawn for general operating expenses, exceeding the amount disclosed in the offering documents.

Texas Securities Commissioner Travis Iles alleged that EPIC entities were selling securities without meeting registration or exemption requirements and referred the matter to Paxton after finding “clear” violations.

Paxton first announced his investigation in March and requested a referral in October after uncovering additional concerns.

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Land for sale near the East Plano Islamic Center and mosque in Plano, Texas. (Ronaldo Schemidt/AFP via Getty Images)

Paxton is asking the court to halt all fundraising activities connected to the project, freeze assets, appoint a receiver, correct public statements and impose fines of up to $20,000 per violation. The lawsuit also seeks the return of investor funds.

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Since rebranding as “The Meadow,” EPIC City has been marketed as a master-planned development spanning Hunt and Collin counties. Court filings show hundreds of investors purchased homes.

Fox News Digital has requested comment from EPIC, CCP and Paxton’s office.

The entire case may be read here.