Texas Attorney General Ken Paxton announced Tuesday that his office has uncovered evidence suggesting that the developers behind a proposed Muslim-centric real estate project known as EPIC City violated both state and federal securities laws. Paxton has requested that the Texas State Securities Board review his office’s findings and provide a formal referral that would allow the Attorney General’s Office to pursue legal action.
EPIC City, a planned mixed-use community spanning 402 acres across Collin and Hunt Counties, is being developed by Community Capital Partners (CCP). The project includes plans for more than 1,000 homes, a mosque, a K-12 school, and several commercial facilities. The proposal has attracted significant attention from state officials since its announcement, both for its scale and for concerns raised about its financial and regulatory conduct.
Paxton stated in his letter to the Texas State Securities Board that his investigation uncovered evidence of both “procedural violations and fraudulent conduct” by the developers. “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.”
The Attorney General’s Office has not yet filed a lawsuit, but under Texas law, the Securities Board must first review the findings and issue a referral before formal legal proceedings can begin. Paxton’s request signals that his office is prepared to take further action pending the board’s review.
The development has drawn scrutiny from multiple state agencies. The Texas Commission on Environmental Quality previously contacted CCP regarding permits required to establish a municipal utility district. The Texas Funeral Service Commission and the Texas Workforce Commission have also reached out to the developers with regulatory inquiries.
Governor Greg Abbott has been outspoken about the project, instructing the Texas Rangers to investigate the development and its related entities. Abbott, who has previously expressed opposition to any interpretation of Islamic law within state boundaries, commented on social media, “Sharia law is not allowed in Texas.”
Earlier this year, U.S. Senator John Cornyn requested a Department of Justice (DOJ) review of EPIC City to ensure that the project did not discriminate against people of other faiths. The DOJ’s Civil Rights Division opened an inquiry in April but later closed the investigation in June. In a letter to Community Capital Partners, Assistant Attorney General Harmeet Dhillon confirmed that the DOJ found no evidence of discriminatory practices. “CCP has affirmed that all will be welcome in any future development,” the letter stated.
EPIC City is located near the town of Josephine, approximately 40 miles northeast of Dallas. It is being developed under the guidance of the East Plano Islamic Center (EPIC), a nonprofit religious organization, through its for-profit arm, Community Capital Partners. The first phase of the development — roughly 500 residential lots — reportedly sold out within six months. Developers have since launched a second investment phase and are marketing additional residential and commercial plots.
In addition to EPIC City, the group is also developing EPIC Ranches, a nearby project featuring larger home sites and townhome parcels located roughly half a mile from the main development. Both projects are part of a broader plan to establish a modern, inclusive community with integrated religious, educational, and commercial spaces.
As state and federal investigations continue, the future of EPIC City remains uncertain. Paxton’s push for legal action underscores the growing tension between Texas authorities and developers of the high-profile project. Whether the Securities Board will approve a referral for litigation remains to be seen, but the case has already emerged as one of the state’s most closely watched real estate and regulatory disputes of the year.
