Plano, Texas, December 6, 2025
Texas Attorney General Ken Paxton has filed a lawsuit against the East Plano Islamic Center and its affiliates alleging significant violations of securities laws linked to a proposed development project. The lawsuit claims the defendants engaged in fraudulent fundraising practices and failed to verify investor qualifications. Investigations into the handling of investment funds surrounding the ambitious EPIC City development have raised concerns about ethical business practices and compliance with state regulations.
Texas Attorney General Sues East Plano Islamic Center Over Alleged Securities Violations
Plano, Texas – 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 violations of Texas securities laws in connection with a proposed development project.
The lawsuit brings to light significant concerns about the handling of investment funds related to the project, once dubbed EPIC City and now named The Meadow. This ambitious project aims to build over 1,000 homes, a K-12 faith-based school, a mosque, and various community facilities on approximately 402 acres, located about 40 miles northeast of downtown Dallas. As Texas continues to attract diverse communities and entrepreneurs, this case highlights critical aspects of regulatory compliance and ethical fundraising.
Allegations of Fraudulent Practices
The lawsuit accuses the defendants of engaging in fraudulent activities while soliciting funds for the development. Specifically, it is alleged that CCP sold investment interests without proper registration or qualifying for necessary exemptions. Investigators assert that the developers failed to verify the accredited investor status of more than 10% of purchasers, as required by law. Furthermore, promotional materials for the project indicated that it would be reserved exclusively for Muslims and described it as the “epicenter of Islam in North America.”
Background and Investigations
In March 2025, Attorney General Paxton initiated investigations into the development project, focusing on potential violations of consumer protection laws. The Texas State Securities Board has also investigated possible non-compliance with state and federal securities requirements to protect against fraud. Moreover, Governor Greg Abbott has instructed state agencies to look further into EPIC and its affiliated entities, including the Texas Workforce Commission’s investigation into potential discriminatory practices in housing.
Attorney General Paxton indicated the importance of safeguarding Texas residents and enforcing the rule of law. The implications of this case resonate beyond mere regulatory compliance, highlighting the balance between encouraging community development and ensuring ethical standards in business practices.
Next Steps
The lawsuit seeks to halt all fundraising related to the project, freeze assets, appoint a receiver, correct public statements, and impose civil penalties of up to $20,000 per violation. It also requests the return of investor funds. With ongoing legal proceedings and no comments yet from EPIC or Community Capital Partners, the outcome remains uncertain as the situation develops.
Frequently Asked Questions (FAQ)
What is the EPIC City development project?
The EPIC City development, now referred to as The Meadow, is a proposed project in Collin and Hunt counties, Texas, planned to include over 1,000 homes, a K-12 faith-based school, a mosque, elderly and assisted living facilities, apartments, clinics, retail shops, a community college, and sports fields on 402 acres.
What are the allegations against the East Plano Islamic Center and Community Capital Partners?
The lawsuit alleges that the defendants engaged in fraudulent practices while soliciting funds for the development, including selling unregistered securities, failing to verify the accredited investor status of purchasers, and making misleading promotional statements about the project’s exclusivity and location.
What actions has the Texas Attorney General taken in this case?
Attorney General Ken Paxton filed a lawsuit seeking to halt all fundraising related 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.
Have there been other investigations into the EPIC City project?
Yes, multiple state agencies, including the Texas State Securities Board and the Texas Workforce Commission, have conducted investigations into the project for potential violations of securities and fair housing laws.
What is the current status of the lawsuit?
The lawsuit is ongoing, and further updates are expected as the case develops. Representatives for EPIC and Community Capital Partners have not yet responded to requests for comment.
Key Features of the EPIC City Development Project
| Feature | Description |
|---|---|
| Location | Collin and Hunt counties, Texas, approximately 40 miles northeast of downtown Dallas. |
| Size | 402 acres. |
| Residential Units | Over 1,000 homes. |
| Educational Facilities | K-12 faith-based school and community college. |
| Religious Facility | Mosque. |
| Healthcare Facilities | Elderly and assisted living facilities, clinics. |
| Commercial Facilities | Apartments, retail shops. |
| Recreational Facilities | Sports fields. |
Deeper Dive: News & Info About This Topic
HERE Resources
DOJ Closes Investigation into EPIC City Development
Author: STAFF HERE DALLAS WRITER
The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
