On Friday, Attorney General Ken Paxton initiated legal action against the East Plano Islamic Center and its leaders in North Texas, alleging securities fraud following intense scrutiny from Republican officials and commentators regarding a proposed Muslim community.
The East Plano Islamic Center is promoting a residential project, previously named EPIC City, which aims to include over 1,000 housing units, a mosque, a K-12 faith-based school, and retail spaces located just outside of Dallas. Earlier this year, the project attracted several state investigations for reasons that remain unclear, including one led by Paxton, who mentioned in March that he was examining possible breaches of consumer protection laws.
In the lawsuit, Paxton charged Community Capital Partners—a private entity he claims was established by EPIC—with not registering as a securities dealer and committing fraud by misrepresenting the project’s location and the compensation of its leaders. This legal action was filed in Collin County, where part of the project is set to occur, about six weeks after Paxton contacted the Texas Securities Board to report violations uncovered during the investigation. He requested the board to evaluate these findings and provide feedback to facilitate his lawsuit.
The development is no longer referred to as EPIC City but has been renamed The Meadow. Attempts to reach EPIC for comments on Friday evening were unsuccessful.
In a statement, Paxton accused the leaders of EPIC City of engaging in a “radical plot” to destroy extensive tracts of beautiful land in Texas while enriching themselves. He asserted his commitment to using the full power of the law against anyone who thinks they can disregard regulations and harm Texans.
This legal development adds to the ongoing controversy surrounding the community, which has faced significant Islamophobic backlash for several months. Earlier this summer, the U.S. Department of Justice quietly concluded its investigation into the housing project, stating that the developers had agreed to adhere to federal fair housing laws.
