Texas Attorney General Initiates Legal Action Against EPIC City Developers
On Friday, Texas Attorney General Ken Paxton lodged a lawsuit targeting the East Plano Islamic Center (EPIC), alongside Community Capital Partners (CCP) and various associated officials. The allegations encompass orchestrating an illegal securities and land development scheme tied to a projected 400-acre community dubbed “EPIC City.”
The legal filing, submitted in Collin County, stems from a meticulous months-long inquiry and a referral from the Texas State Securities Board. The authorities assert that the defendants amassed tens of millions of dollars while contravening securities legislation, providing misleading information about the essence and geographical locus of the project, as well as misrepresenting the allocation of funds.
Paxton remarked, “The architects of EPIC City have engaged in a nefarious scheme designed to devastate vast expanses of beautiful Texas land while enriching themselves.”
He vowed to utilize the full weight of the law against those who would disregard regulations and harm Texas residents.
According to the Verified Petition, CCP offered investment stakes in the range of $40,000 to $80,000 without registering the securities or qualifying for federal exemptions.
Moreover, the state claims the group solicited investors extensively via meetings, social media platforms, and online promotions—activities that are impermissible under the exemptions they asserted.
Investigators further allege that the developers were negligent in verifying that purchasers qualified as accredited investors, with many lacking essential documentation.
The petition highlights that the project was advertised as located “in the heart of Josephine, Texas,” even after city officials informed the developers in February 2025 that the land was outside their jurisdiction and utility district. Nevertheless, promotional materials continued to perpetuate this claim.
The state also points to allegedly biased marketing materials aimed at Muslim investors, with early website content and videos portraying EPIC City as the “epicenter of Islam in North America.”
Additionally, Paxton’s office contends that CEO Imran Chaudhary publicly promised to accept “not a cent” in salary, yet subsequently entered into a contract remunerating him $360,000 annually through a separate entity, a compensation structure not disclosed in the offering documents.
According to investigators, over $1 million in investor funds were withdrawn for general operating expenses, far surpassing the amounts outlined in offering documents.
Texas Securities Commissioner Travis Iles expressed that EPIC entities sold securities without satisfying registration or exemption criteria, thus referring the case to Paxton after identifying egregious violations.
Initially announced in March, Paxton sought the referral in October after uncovering further alarming concerns.
In his legal request, Paxton aims for the court to suspend all fundraising associated with the project, freeze assets, appoint a receiver, rectify misleading public statements, and impose civil penalties of up to $20,000 for each violation. The lawsuit also seeks restitution of investor funds.
EPIC City, recently rebranded as “The Meadow,” was marketed as a meticulously planned development spanning Hunt and Collin counties, with numerous investors acquiring stakes.
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