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Paxton Sues Developers of Muslim-Led North Texas Project Over Alleged Securities Violations

The filing follows a federal civil-rights review that ended after developers agreed to comply with fair housing rules.

Overview

  • Texas Attorney General Ken Paxton filed a Collin County lawsuit against the East Plano Islamic Center, Community Capital Partners, and several leaders over the planned community now called The Meadow.
  • Paxton alleges CCP sold unregistered securities and failed to register as a dealer while misleading investors about the project’s location and a leader’s compensation.
  • The complaint claims marketing suggested housing would be reserved for Muslims and accuses project leaders of embezzling funds, allegations that remain unproven in court.
  • The state seeks to halt fundraising, freeze assets, appoint a receiver, correct public statements, impose civil penalties, and secure restitution for investors.
  • The proposed development, formerly EPIC City, envisions more than 1,000 homes, a mosque, a K–12 faith-based school, and retail, and it has drawn scrutiny from multiple Texas officials and agencies.