Disagreement Over Muslim-Centric Residential Development in Dallas-Fort Worth
Attorney General Ken Paxton and the Texas State Securities Board are in disagreement over a lawsuit that Paxton’s office filed last week targeting a planned Muslim-centric residential development in Dallas-Fort Worth once called EPIC City.
The state agency said Monday that the East Plano Islamic Center and affiliated development group Community Capital Partners did not violate portions of the Texas Securities Act despite claims from Paxton’s office in a recently filed lawsuit.
Investigation and Findings
The Texas State Securities Board conducted a monthslong investigation and concluded developers were not selling securities — investment contracts sold to investors for the purpose of raising funds — as defined by state law “despite being treated and marketed to investors as such.”
To reserve lots in the development, investors must buy an $80,000 share of Community Capital Partners. The money will be credited to the purchase of a home lot, the group said.
Registration and Exemptions
Paxton’s office also said Community Capital Partners should not be eligible for registration exemptions as spelled out under the U.S. Securities and Exchange Commission’s (SEC) Regulation D guidelines.
Community Capital Partners said it would sell shares only to accredited investors. Along with other requirements, that means an individual must have a net worth of over $1 million along with an individual income of at least $200,000 or a household income of at least $300,000 in each of the past two years, according to SEC guidelines.
Lawsuit and Allegations
Paxton filed the lawsuit in part because the development group allegedly violated portions of state law. He said the firm failed to properly register the investments it was selling.
Paxton accused the mosque, the development group and others of “engaging in an illegal development scheme that violated Texas securities law” last week. Paxton filed the 21-page civil lawsuit in Collin County to stop the project.
Development Project
The development — once called EPIC City and now referred to as The Meadow — is a planned Muslim-centric development of more than 1,000 homes, a K-12 faith-based school, a mosque, elderly and assisted living, apartments, clinics, retail shops, a community college and sports fields on 402 acres in Collin and Hunt counties.
Response from Community Capital Partners
Community Capital Partners said in a statement it was “particularly troubling” that Paxton’s lawsuit “clearly contradicts” what the state securities board told his office.
“We respect the role of regulatory agencies and welcome lawful oversight,” the group said. “However, the fact that multiple reviews were completed, and that these findings were known before litigation was filed, raises serious and unavoidable questions about why this matter is now being framed as a securities case and why this project continues to be targeted despite repeated reviews finding no securities violations.”
Investigations and Open Cases
Gov. Greg Abbott has directed state agencies to investigate EPIC and its affiliated entities.
Two investigations tied to the development have been settled or closed. Others remain open.
In September, the Texas Workforce Commission settled a Fair Housing Act complaint against the developers.
The U.S. Department of Justice dropped a civil rights investigation tied to the project in June.
Abbott said in an X post last week at least four state agencies have open investigations related to the project.
Work on next phase continues while Carrollton and other cities weigh their future with DART.
The lender took the property in a foreclosure auction in 2024. It’s being listed again.
Google recently announced it was expanding data center operations in Texas.
Conclusion
The disagreement between Attorney General Ken Paxton and the Texas State Securities Board over the lawsuit targeting the planned Muslim-centric residential development in Dallas-Fort Worth has raised questions about the project’s legitimacy and the role of regulatory agencies in overseeing such developments.
Frequently Asked Questions
Q: What is the EPIC City development project?
A: The EPIC City development project, now referred to as The Meadow, is a planned Muslim-centric development of more than 1,000 homes, a K-12 faith-based school, a mosque, elderly and assisted living, apartments, clinics, retail shops, a community college and sports fields on 402 acres in Collin and Hunt counties.
Q: What is the lawsuit filed by Attorney General Ken Paxton’s office about?
A: The lawsuit filed by Attorney General Ken Paxton’s office alleges that the development group violated portions of the Texas Securities Act by selling unregistered securities and failing to properly register the investments it was selling.
Q: What is the Texas State Securities Board’s stance on the lawsuit?
A: The Texas State Securities Board conducted an investigation and concluded that the developers were not selling securities as defined by state law, despite being treated and marketed to investors as such.
Q: What are the implications of the disagreement between Attorney General Ken Paxton and the Texas State Securities Board?
A: The disagreement between Attorney General Ken Paxton and the Texas State Securities Board has raised questions about the project’s legitimacy and the role of regulatory agencies in overseeing such developments, and may have implications for the future of the project and the regulatory oversight of similar developments in the state.
