Texas AG Sues Developers Behind 'EPIC City' Alleging Unregistered Securities, Misleading Muslim-Focused Marketing

Texas Attorney General Files Suit Over EPIC City Development

Texas Attorney General Ken Paxton filed a lawsuit on Friday in Collin County against the East Plano Islamic Center (EPIC), Community Capital Partners (CCP) and several affiliated leaders, alleging an illegal securities and land development scheme tied to a proposed 400-acre project originally marketed as "EPIC City." The suit follows a months-long investigation and a referral from the Texas State Securities Board.

Allegations and Fundraising Practices

According to the verified petition, state regulators assert the defendants raised tens of millions of dollars by selling investment interests priced between $40,000 and $80,000 without registering the securities or qualifying for applicable federal exemptions. Prosecutors say promoters broadly solicited buyers through meetings, social media and online promotions — activities that would disqualify the exemptions CCP claimed.

Investigators also contend the developers failed to take reasonable steps to verify that purchasers were accredited investors, noting missing or inadequate documentation for numerous buyers. The petition alleges more than $1 million in investor funds were withdrawn for general operating expenses in excess of what the offering documents permitted.

Marketing, Location Claims and Targeted Messaging

The complaint says marketing materials continued to describe the site as being "in the heart of Josephine, Texas" even after the City of Josephine informed developers in February 2025 that the land was not inside its limits or its utility district. The state also points to promotional content that appeared to specifically target Muslim buyers, citing early website language and videos that described EPIC City as the "epicenter of Islam in North America."

"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."

Compensation and Use of Funds

The suit highlights public statements by CEO Imran Chaudhary, who allegedly told the public he would take "not a cent" in salary, but later signed a contract that would pay him $360,000 a year through a separate company — an arrangement the complaint says was not disclosed in the written offering materials. Investigators say this and other withdrawals raise questions about whether funds were used in accordance with investor disclosures.

Regulatory Response and Relief Sought

Texas Securities Commissioner Travis Iles referred the matter to Paxton after identifying what he described as "flagrant" violations. Paxton first announced his investigation in March and sought the Securities Board referral in October after uncovering additional concerns.

The lawsuit asks the court to halt all fundraising tied to the project, freeze assets, appoint a receiver, require corrections to public statements, impose civil penalties of up to $20,000 per violation and order the return of investor funds. Court filings indicate the development — since rebranded as "The Meadow" — was marketed as a master-planned community spanning Hunt and Collin counties and that hundreds of investors purchased units.

Fox News Digital has requested comment from EPIC, CCP and Paxton’s office. The full lawsuit is available in court records.