Texas Attorney General Ken Paxton announced on October 13 that his office uncovered evidence showing developers behind EPIC City, a proposed 402-acre Muslim-centric community near Dallas, violated both federal and state securities laws through “procedural violations and fraudulent conduct,” requesting that the Texas State Securities Board authorize legal action against the East Plano Islamic Center and its affiliated entities.
Allegations of Securities Violations
After reviewing more than 750 documents related to Community Capital Partners LP, the for-profit entity established by East Plano Islamic Center members to raise funds for the development, Paxton’s office identified what it characterizes as deliberate violations of securities regulations.
The attorney general sent a formal letter to Texas State Securities Board Chairman E. Wally Kinney and Commissioner Travis J. Iles, requesting they examine the evidence and refer the matter back to his office for prosecution.
Texas law requires the Securities Board to refer cases to the Attorney General before he can file a lawsuit against the developers. The Attorney General’s office has extended an invitation to board officials to join his investigative team for reviewing the collected evidence.
Project Under Siege Since March
The investigation marks the current stage of a prolonged political controversy about EPIC City, which will develop into a 1,000-home community with a mosque, K-12 faith-based school, senior housing, community college, and commercial areas near Josephine, about 40 miles northeast of Dallas. The development serves the expanding Muslim population of North Texas because its initial 450 residential plots became fully sold out shortly after the project announcement, according to Yasir Qadhi, who serves as resident scholar at the East Plano Islamic Center.
Texas Governor Greg Abbott initiated multiple state investigations in March 2025 because he believed the development would establish a “Sharia city” that would create Muslim-only areas that exclude non-Muslims, according to developers who deny these allegations. The Texas Rangers, together with the Texas Workforce Commission, Texas State Securities Board, and Texas Funeral Service Commission, received instructions from the governor to investigate different aspects of the project.
“To be clear, Sharia law is not allowed in Texas. Nor are Sharia cities. Nor are ‘no go zones’ which this project seems to imply.”
— Governor Greg Abbott
“We’ve been trying to follow every single law that is out there, from the state perspective to the federal perspective,” responded Imran Chaudhary, former president of the EPIC board of directors and current executive officer of Community Capital Partners.
Federal and State Probes Conclude Without Charges
Multiple. The Department of Justice ended its civil rights probe of EPIC City in June 2025 after Senator John Cornyn asked for a federal assessment of religious bias against Christians and Jews. The Texas Workforce Commission investigations into this case ended without discovering any enforceable violations despite receiving widespread media attention. The U.S settled with Community Capital Partners through a Fair Housing Act complaint resolution in September 2025, but maintained all settlement information as confidential. The developers at EPIC City maintain their dedication to operational fairness, according to Cogdell Law Firm Attorney Anthony Osso. The Cogdell Law Firm’s Attorney, Anthony Osso, stated to the media that EPIC City maintains equal treatment for all its clients and residents who live in Collin County.
Community Response and Civil Rights Concerns
The construction project has created intense disagreements between people who live in the area. The April Collin County Commissioners Court hearing brought out two groups of speakers who disagreed about infrastructure needs and development resources and who used derogatory language to call the project a “compound” while spreading false stereotypes about Muslim religious practices.
Fawzia Belal from the East Plano Islamic Center defended against false accusations during the commissioners’ meeting. Belal explained at the commissioners' meeting that the allegations about women being oppressed and lacking a voice and Sharia law taking control were utterly false. Belal declared that Muslims who live in this country share the same American citizenship as all other citizens.