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

Texas Legal professional Basic Ken Paxton filed a lawsuit Friday in opposition to the East Plano Islamic Middle (EPIC), Neighborhood Capital Companions (CCP) and a number of other related leaders, accusing them of operating an unlawful securities and land improvement scheme tied to a proposed 400-acre group generally known as “EPIC Metropolis.”

The lawsuit, filed in Collin County, follows a months-long investigation and a referral from the Texas State Securities Board. The state alleges that the defendants raised tens of thousands and thousands of {dollars} whereas violating securities legal guidelines, deceptive traders in regards to the nature and site of the mission and misrepresenting how the funds could be used.

“The leaders behind EPIC Metropolis are engaged in a radical plot to destroy a whole lot of acres of gorgeous Texas land and line their very own pockets,” Paxton mentioned. “I’ll ruthlessly use the total drive of the regulation in opposition to anybody who thinks they will ignore the principles and damage Texans.”

Based on the verified petition, CCP bought funding pursuits for $40,000 to $80,000 regardless of not registering the securities or qualifying for federal exemptions.

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Muslims pray throughout Friday prayers at a mosque in Plano, Texas. (Ronaldo Schemidt/AFP through Getty Photographs)

The state alleges that the group broadly recruited traders by rallies, social media and on-line promotions, that are actions not allowed below the exemptions they claimed.

Investigators additionally allege that builders didn’t take affordable steps to confirm that patrons have been accredited traders, with documentation lacking or insufficient for a lot of patrons.

The petition states that the mission was marketed as being “within the coronary heart of Josephine, Texas” even after the town advised builders in February 2025 that the land was not inside the utility district boundaries. Advertising supplies would proceed to make this declare.

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Individuals arrive at a mosque to attend Friday prayers in Plano, Texas. (Ronaldo Schemidt/AFP through Getty Photographs)

The state additional factors to alleged promotional supplies that appeared to focus on Muslim customers, together with early web site language and movies describing EPIC Metropolis because the “epicenter of Islam in North America.”

Paxton’s workplace additionally alleges that CEO Imran Chaudhary publicly promised he would not take “a dime” in wage, however later signed a contract paying him $360,000 per 12 months by a separate firm, a compensation association not disclosed within the written providing supplies.

Investigators allege that greater than $1 million in investor funds have been withdrawn for basic company bills, which is greater than what was described within the providing paperwork.

Texas Securities Commissioner Travis Iles alleges that EPIC entities bought securities with out assembly registration or exemption necessities and referred the matter to Paxton after discovering “egregious” violations.

Paxton first introduced his investigation in March and requested a referral in October after discovering further considerations.

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Land on the market close to the East Plano Islamic Middle and Mosque, in Plano, Texas. (Ronaldo Schemidt/AFP through Getty Photographs)

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Paxton is asking the court docket to halt all fundraising associated to the mission, freeze belongings, appoint a receiver, right public statements and impose civil penalties of as much as $20,000 per violation. The lawsuit additionally seeks the return of investor funds.

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EPIC Metropolis, since renamed “The Meadow,” was marketed as a master-planned improvement encompassing Hunt and Collin counties. Courtroom data present a whole lot of traders bought items.

Fox Information Digital has requested remark from EPIC, CCP and Paxton’s workplace.

The total lawsuit might be read here.