Attorney General Ken Paxton has informed the Texas State Securities Board stating that his office has uncovered evidence showing entities connected to the East Plano Islamic Center and its controversial proposed EPIC City land development project violated both federal and state securities laws.
In a letter to Chairman E. Wally Kinney and Commissioner Travis J. Iles, Paxton said his office conducted an investigation into Community Capital Partners LP (CCP), the group raising funds for EPIC City, after receiving multiple complaints. The attorney general’s office requested extensive records from CCP and says it has now reviewed more than 750 documents related to the offering of securities tied to the project.
“In the course of the investigation, the OAG identified evidence that CCP violated federal and state securities laws and regulations, including both procedural violations and fraudulent conduct,” Paxton wrote. He invited the Securities Board to meet with his investigative team, review the evidence, and—if it agrees with his findings—refer the case back to the attorney general’s office so that legal action can proceed.
Paxton noted that the Texas Securities Act requires the commissioner and the attorney general to work together to “prevent or detect a violation of the law,” saying he looks forward to collaborating “to ensure that Texas law is being enforced and Texans are protected.”
“After a thorough investigation, it has become clear that the developers behind EPIC City flagrantly and undeniably violated the law,” said Paxton. “The bad actors behind this illegal scheme must be held accountable for ignoring state and federal regulations.”
The development marks a significant escalation in the state’s ongoing crackdown on EPIC City. Multiple state agencies have launched investigations into the project, including the Funeral Service Commission, the Commission on Environmental Quality, and the Workforce Commission.
Additionally, Gov. Greg Abbott has also recently signed legislation he said will effectively ban “Sharia compounds” like EPIC City in Texas. The measure removes certain religious exemptions from the Texas Fair Housing Act for organizations owning more than 25 acres and prevents them from limiting home sales based on religion.
Abbott described developments like EPIC City as “religious segregation” disguised as religious liberty, accusing its backers of structuring property ownership so that only Muslims could buy and resell homes under rules based on Sharia law.
Paxton’s findings now add another layer to that legislative and regulatory effort. If the Securities Board agrees with his office’s conclusions and formally refers the case, the attorney general is expected to file suit against Community Capital Partners and other parties tied to EPIC City for violations of securities law.
Representatives for EPIC and CCP have previously denied wrongdoing, calling the investigations politically motivated. As of publication, they have not commented on this latest development by Paxton.
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