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DALLAS – Texas Attorney General Ken Paxton is asking the state’s securities board to review his office’s findings regarding a proposed Muslim-centric development in Collin and Hunt counties.
Paxton on Tuesday claimed to find evidence that the developers of EPIC City violated federal and state securities laws and regulations and requested that the Texas State Securities Board meet with the attorney general’s office to review the investigation. Under Texas law, the securities board must provide a referral before the attorney general’s office can file a lawsuit against EPIC City developer, Community Capital Partners.
“In the course of the investigation, the OAG identified evidence that CCP violated federal and state securities laws and regulations, including both procedural violations and fraudulent conduct,” Paxton wrote in a letter to TSSB.
What they’re saying:
“After a thorough investigation, it has become clear that the developers behind EPIC City flagrantly and undeniably violated the law,” Paxton said. “The bad actors behind this illegal scheme must be held accountable for ignoring state and federal regulations. In accordance with state law, the TSSB should review our findings and refer this matter to me for further legal action.”
State investigations into EPIC City
The backstory:
EPIC City has drawn the attention of Governor Greg Abbott, Attorney General Ken Paxton and other Texas leaders.
The developers and East Plano Islamic Center have also been targeted by the Texas Commission on Environmental Quality, who sent a letter to CCP about the permits required to create a municipal utility district.
Gov. Greg Abbott has also asked the Texas Rangers to investigate the mosque and related businesses.
In a post about EPIC City on social media, Abbott commented, “Sharia law is not allowed in Texas.”
The mosque was also sent a letter from the Texas Funeral Service Commission and has drawn the attention of the Texas Workforce Commission.
Paxton opened an investigation into communications between EPIC and city officials in Plano, Richardson and Wylie. His office is also looking into CCP.
Dept. of Justice investigation
Sen. John Cornyn requested a DOJ investigation into EPIC City in April, bringing up concerns that the community could discriminate based on faith.
Cornyn sent the letter to Assistant Attorney General Harmeet Dhillon, the assistant attorney general for civil rights, asking the agency to look into possible discrimination against other religious groups.
The investigation was dropped in June.
In a letter to Community Capital Partners, Dhillon said the department was closing its investigation.Â
“CCP has affirmed that all will be welcome in any future development, and that you plan to revise and develop marketing materials to reinforce that message consistent with your obligations under the Fair Housing Act,” Dhillon said in the June 13 letter. “Based on this information, the Department is closing its investigation at this time.”
What is EPIC City?
EPIC City is a planned development near Josephine, Texas, about 40 miles northeast of Dallas.
The East Plano Islamic Center, or EPIC, is the organization behind the proposed development.
EPIC’s for-profit company, Community Capital Partners, purchased the 402 acres with the goal of building a mosque, along with 1,000 homes, townhomes, and apartments.
The development sold out its first phase of development, around 500 lots, within six months. Developers are still accepting investors for the second phase of the development.
EPIC Ranches is another development near EPIC City that offers larger plot sizes of up to an acre and townhome sites that are about a half mile away from EPIC City.
The Source: Information in this article comes from the Texas Attorney General’s Office. Information on previous investigations into EPIC City comes from previous FOX 4 reporting.