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Paxton Sues EPIC City Developers in Collin County, Alleging Securities Fraud

The filing follows a securities board referral after the DOJ closed a separate fair‑housing review.

Overview

  • Texas Attorney General Ken Paxton filed a verified petition against the East Plano Islamic Center, Community Capital Partners, and several leaders tied to the project now called The Meadow.
  • The state alleges unregistered or improperly offered securities, misleading claims about the project’s location, and misrepresentations about how investor funds and executive compensation would be handled.
  • Court filings say marketing materials described the development as being in Josephine, Texas despite city communications to the contrary, and highlighted messaging that appeared to target Muslim buyers.
  • Investigators allege the developers failed to verify that purchasers were accredited investors and withdrew more than $1 million for operating expenses beyond what offering documents described.
  • Paxton seeks to halt fundraising, freeze assets, appoint a receiver, require corrective statements, impose civil penalties of up to $20,000 per violation, and recover investor funds.