Texas Attorney General Ken Paxton A lawsuit was filed Friday against East Plano. islamic center (EPIC), Community Capital Partners (CCP) and several related leaders, alleging they operated an illegal securities and land development scheme in connection with the proposed 400-acre community “EPIC City.”

The lawsuit was filed in Collin County and follows a months-long investigation. Texas Securities Commission. The state alleges the defendants raised tens of millions of dollars while violating securities laws by misleading investors about the nature and location of the project and misrepresenting how the funds were used.

“The leaders behind EPIC City are engaged in a radical conspiracy to destroy hundreds of acres of beautiful Texas land and enrich themselves,” Paxton said. “I will relentlessly bring the full force of the law to bear on anyone who thinks they can flout the rules and harm Texans.”

According to the verified petition, CCP sold investment interests for $40,000 to $80,000 even though CCP failed to register the securities or qualify for a federal exemption.

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Muslims pray at a mosque in Plano, Texas, during Friday prayers. (Ronaldo Schmidt/AFP via Getty Images)

The state alleges the group solicited investors extensively through conferences, social media and online promotions, but this was impermissible activity under their purported exemption.

Investigators also allege the developers failed to take reasonable steps to verify that buyers were accredited investors, with many buyers having missing or inadequate documentation.

The project was advertised as being “located in downtown Josephine, Texas,” even though the city told the developer in February 2025 that the land was not within its boundaries or utility zone, the petition states. Marketing materials allegedly continue to make such claims.

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People arrive for Friday prayers at a mosque in Plano, Texas. (Ronaldo Schmidt/AFP via Getty Images)

The state further noted that the alleged promotional materials appeared to be targeted at Muslim buyers, including early website language and videos describing EPIC City as the “center of Islam in North America.”

Paxton’s office also alleges that CEO Imran Chaudhary publicly promised he would not take “a penny” in salary but later signed a contract to pay him $360,000 annually through another company, a compensation arrangement that was not disclosed in written offer materials.

Investigators said more than $1 million in investor funds were withdrawn for general operating expenses, exceeding the amounts stated in offering documents.

Texas Securities Commissioner Travis Iles alleged that EPIC entities sold securities without meeting registration or exemption requirements and referred the matter to Paxton after discovering “blatant” violations.

Paxton first announced his investigation in March and sought a referral in October after more problems were uncovered.

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Land for sale near the East Plano Islamic Center and Mosque in Plano, TX. (Ronaldo Schmidt/AFP via Getty Images)

Paxton asked the court to halt all fundraising related to the project, freeze assets, appoint a receiver, correct public statements and impose civil penalties of up to $20,000 per violation. The lawsuit also seeks the return of investor funds.

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EPIC City, since rebranded as “The Meadow,” has been promoted as a master-planned development spanning Hunt and Collin counties. Hundreds of investors purchased units, court documents show.

Fox News Digital has requested comment from EPIC, CCP and Paxton’s office.

A complete lawsuit can be read here.