Texas Attorney General Ken Paxton has escalated his office’s scrutiny of the East Plano Islamic Center (EPIC) and its affiliated residential development, EPIC City, by requesting that the Texas State Securities Board (TSSB) review findings from a state investigation. The move could pave the way for a potential lawsuit.
EPIC City, a Muslim-centered residential community planned on 402 acres outside the Dallas-Fort Worth area, has been the subject of multiple state and federal inquiries due to concerns over its development practices and compliance with state and federal laws. Plans for the community include a mosque, over 1,000 homes, private schools, and utilities managed through an approved Municipal Utility District.
In a press release, Paxton stated, “After a thorough investigation, it has become clear that the developers behind EPIC City flagrantly and undeniably violated the law. 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.”
According to Paxton’s office, Community Capital Partners (CCP), EPIC City’s development partner, provided 750 documents during the investigation. The Attorney General’s Office concluded that CCP “violated federal and state securities laws and regulations, including both procedural violations and fraudulent conduct.”
Meanwhile, the U.S. Department of Justice announced in June that it would close its own investigation into EPIC City and CCP. In a letter, the DOJ noted that CCP affirmed its commitment to welcoming all individuals in future development and that it plans to revise marketing materials to align with Fair Housing Act requirements.
The development has also drawn criticism from Texas Governor Greg Abbott, who previously stated that “the proposed community will never see the light of day.” Abbott’s recent signing of House Bill 4211, which prohibits certain discriminatory practices in real estate ownership, explicitly targeted communities like EPIC City, describing them as “bad actors” and stating the law is designed to prevent “Sharia compounds” in Texas.
EPIC City’s attorney, Dan Cogdell, who represented the Texas House Board of Managers during Paxton’s 2023 impeachment trial, condemned Abbott’s statements as “hate speech” and criticized what he described as false claims being spread by the governor’s office.
As the TSSB begins its review of the Attorney General’s findings, state officials are signaling that further legal action could be imminent. The case has reignited debates over religious-based residential developments, securities law compliance, and the limits of state authority in regulating community projects.
