The Attorney General of Texas, Ken Paxton, has initiated legal proceedings against an Islamic community organisation and its partners, alleging they orchestrated an unlawful land development scheme marketed as a new 'Muslim city'.
Allegations of a "Radical Plot" and Financial Misconduct
Following a months-long investigation, Paxton's office filed a lawsuit targeting the East Plano Islamic Center (EPIC), Community Capital Partners (CCP), and their leaders. In a strongly worded statement, Paxton accused the group of engaging in what he termed a "radical plot to destroy hundreds of acres of beautiful Texas land and line their own pockets." He vowed to use the full force of the law to stop the project, known as EPIC City, which has since been rebranded as 'The Meadow'.
The ambitious development plans, covering more than 400 acres in Hunt and Collin counties, proposed constructing 1,000 homes, Islamic schools, and a mosque. Promoters had described the site, located roughly 40 miles east of Dallas, as the future "epicenter of Islam in North America." Despite construction being slated for 2026 or 2027, the properties reportedly sold out, with CCP raising tens of millions of dollars from investors.
Securities Law Violations and Misleading Claims
The core of the lawsuit centres on alleged breaches of Texas securities laws and deceptive marketing practices. According to the filing, CCP sold investment interests ranging from $40,000 to $80,000 without properly registering the securities or qualifying for a federal exemption. The state claims the groups solicited investors through illegal tactics, including meetings, social media, and online promotions.
Furthermore, the lawsuit levelled several specific accusations of misrepresentation:
- At least nine percent of investors were not properly verified as accredited.
- The development was advertised as being "in the heart of Josephine, Texas," despite the purchased land lying outside city limits—a claim allegedly continued even after the developers were notified.
- While EPIC President Imran Chaudhary had vowed not to accept compensation, the suit claims, "on information and belief," he was set to receive $30,000 per month.
- Paxton's office alleges a "significant amount" of investor funds were funnelled into the developers' personal accounts.
Political Context and Community Response
Paxton launched his investigation in March, prompted in part by accusations from Governor Greg Abbott that EPIC aimed to impose Sharia law in Texas. The lawsuit does not directly pursue this claim but forms the backdrop to the state's scrutiny.
The East Plano Islamic Center, a large facility in suburban Dallas capable of accommodating 3,200 worshippers, identifies as a multi-ethnic and open community. Its religious leader, Yasir Qadhi, has previously faced accusations of preaching hatred, homophobia, and antisemitism, which adds another layer of controversy to the case.
Paxton has asked the courts to impose an immediate halt to all fundraising for the development, levy penalties of up to $20,000 per violation, and mandate the return of all investor funds. The legal action seeks to permanently bar those responsible from initiating similar ventures in the future.
