Texas Attorney General Ken Paxton filed a lawsuit on Friday against the East Plano Islamic Center (EPIC), Community Capital Partners (CCP), and several associated leaders. The lawsuit, submitted in Collin County, follows a months-long investigation and a referral from the Texas State Securities Board. The state alleges that the defendants raised tens of millions of dollars while violating securities laws, misleading investors about the project's nature and location, and misrepresenting how funds would be utilized.

According to the Verified Petition, CCP sold investment interests ranging from $40,000 to $80,000 without registering the securities or qualifying for federal exemptions. The state claims the group solicited investors broadly through meetings, social media, and online promotions, which is prohibited under the exemptions they claimed. Investigators also allege that the developers did not take adequate steps to verify that purchasers were accredited investors, with documentation for several buyers being either missing or insufficient.

The petition states that the project was marketed as being "in the heart of Josephine, Texas," despite the city informing developers in February 2025 that the land was outside its limits or utility district. Promotional materials allegedly continued to assert this claim. Additionally, the state points to marketing efforts that appeared to target Muslim buyers, including early website language and videos describing EPIC City as the "epicenter of Islam in North America."

Paxton's office also alleges that CEO Imran Chaudhary publicly promised not to take a salary but later signed a contract that paid him $360,000 annually through a separate company, a compensation arrangement not disclosed in the offering materials. Investigators claim that over $1 million in investor funds were withdrawn for general operating expenses, exceeding what was described in the offering documents.

Texas Securities Commissioner Travis Iles stated that EPIC entities sold securities without meeting registration or exemption requirements and referred the matter to Paxton after identifying significant violations. Paxton is seeking to halt all fundraising related to the project, freeze assets, appoint a receiver, correct public statements, and impose civil penalties of up to $20,000 per violation. The lawsuit also seeks the return of investor funds. EPIC City, now rebranded as "The Meadow," was marketed as a master-planned development spanning Hunt and Collin counties, with hundreds of investors reportedly purchasing units.