{"id":3231,"date":"2025-10-14T17:17:07","date_gmt":"2025-10-14T17:17:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/3231\/"},"modified":"2025-10-14T17:17:07","modified_gmt":"2025-10-14T17:17:07","slug":"paxton-alleges-epic-city-developers-violated-securities-laws","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/3231\/","title":{"rendered":"Paxton alleges EPIC City developers violated securities laws"},"content":{"rendered":"

Attorney General Ken Paxton on Tuesday accused the developers aligned with the Muslim-centric EPIC City<\/a> project of violating federal and state securities laws.<\/p>\n

In a statement, Paxton asserted the developers committed \u201cboth procedural violations and fraudulent conduct\u201d in a letter to two members of the Texas State Securities Board Tuesday, but didn\u2019t specifically identify the violations.<\/p>\n

Paxton indicated he was interested in a lawsuit against the group, pending a referral from the Texas State Securities Board. His office did not immediately respond to phone and email requests for comment.<\/p>\n

Representatives for Community Capital Partners LP, the for-profit entity behind the EPIC City project, did not immediately respond to questions before publication. <\/p>\n

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EPIC City is a planned Muslim-centric development of more than 1,000 homes, a K-12 faith-based school, a mosque, elderly and assisted living, apartments, clinics, retail shops, a community college and sports fields \u2015 all just outside the town of Josephine, about 40 minutes northeast of downtown Dallas.<\/p>\n

As part of its investigation into potential violations of the Texas Securities Act, Paxton\u2019s office requested information related to \u201cofferings of securities\u201d of Community Capital Partners LP. <\/p>\n

How EPIC City works<\/p>\n

Community Capital Partners was formed by some members of the East Plano Islamic Center, one of North Texas\u2019 largest mosques. <\/p>\n

Imran Chaudhary, Community Capital Partners executive officer and director, previously told The Dallas Morning News that the mosque will receive any and all profits from the development.<\/p>\n

To reserve lots in EPIC City, investors must buy an $80,000 share of Community Capital Partners \u2014 money that will be credited to the purchase of a home lot. <\/p>\n

EPIC City investors must be classified as accredited under U.S. Securities and Exchange Commission guidelines. Along with other requirements, that means they must have a net worth of over $1 million \u2015 and individual income of $300,000, or a household income of $300,000 over a period of time, according to documents published on the group\u2019s website.<\/p>\n

Investments help Community Capital Partners cover the cost of the land purchase and the project\u2019s development of roads. <\/p>\n

If the organization doesn\u2018t develop EPIC City, the land will be sold and investors will be refunded, according to investor documents.<\/p>\n

The group provided over 750 documents along with written responses to Paxton\u2019s office as part of the probe, according to Paxton\u2019s letter.<\/p>\n

\u2018Bad actors\u2019<\/p>\n

In March, Paxton issued a civil investigative demand to Community Capital Partners \u201cto acquire material relevant to an investigation regarding potential violations of Texas consumer protection laws.\u201d<\/p>\n

\u201cThe bad actors behind this illegal scheme must be held accountable for ignoring state and federal regulations,\u201d Paxton said Tuesday. <\/p>\n

\u201cIn accordance with state law, the TSSB should review our findings and refer this matter to me for further legal action.\u201d<\/p>\n

Two other investigations tied to the development have ended. The Texas Workforce Commission settled a Fair Housing Act complaint<\/a> against the community, which Gov. Greg Abbott had previously said may be discriminating based on religion, in September. <\/p>\n

Separately, the U.S. Department of Justice ended a civil rights investigation<\/a> against the development in June.<\/p>\n

Abbott previously said a dozen state agencies are investigating \u201cpotential illegal activities conducted by EPIC and its affiliated entities.\u201d<\/p>\n

In September, the governor ceremonially signed a law that he said had banned \u201cSharia compounds,\u201d<\/a> and which targeted the business structure behind EPIC City.<\/p>\n

Abbott alleged the developers were violating religious freedom laws by trying to use religion as a form of \u201csegregation.\u201d<\/p>\n

At the time, Dan Cogdell, an attorney representing the EPIC mosque and EPIC City developers, has accused<\/a> Abbott of \u201cgubernatorial hate speech.\u201d Cogdell insisted his clients are \u201claw-abiding Texans, law-abiding Americans and law-abiding Muslims.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Attorney General Ken Paxton on Tuesday accused the developers aligned with the Muslim-centric EPIC City project of violating…\n","protected":false},"author":2,"featured_media":3232,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[1881,160,287,111,27,29,28],"class_list":{"0":"post-3231","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-texas","8":"tag-faith","9":"tag-plano","10":"tag-politics","11":"tag-real-estate","12":"tag-texas","13":"tag-texas-headlines","14":"tag-texas-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/3231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=3231"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/3231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/3232"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=3231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=3231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=3231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}