Attorney General Ken Paxton and the Texas State Securities Board are in conflict over a lawsuit filed by Paxton against a large Muslim-focused residential development in the Dallas–Fort Worth area. The project, previously called Epic City and now known as The Meadow, is led by the East Plano Islamic Center and Community Capital Partners.
The development aims to build more than 1,000 homes along with a mosque, a K-12 faith-based school, senior living facilities, apartments, clinics, retail spaces, a community college, and sports fields on 402 acres in Collin and Hunt counties. Community Capital Partners is headed by Imran Chaudhary.
Paxton’s lawsuit claims that Community Capital Partners and related entities ran an illegal scheme by selling unregistered securities in violation of the Texas Securities Act. According to the attorney general’s office, investors were required to purchase an $80,000 limited partnership share in CCP to reserve a lot. The group allegedly did not register these offerings or verify that buyers met accredited investor requirements under SEC Regulation D. Paxton argues that CCP should not be eligible for exemptions normally given to private offerings.
The Texas State Securities Board has publicly disagreed with Paxton’s allegations. After conducting its own investigation over several months, the board concluded that the limited partnership interests offered by CCP do not count as securities under state law—even though they were marketed similarly to investment contracts. The agency did not provide details about its reasoning but stated it had informed Paxton’s office of its findings before the lawsuit was filed. It also suggested that any possible claims might be better pursued under the Texas Deceptive Trade Practices Act instead of securities law.
Community Capital Partners responded: “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.”
Sam Edwards, a Texas-based fraud and securities attorney, said he was unsure how the board determined these investments were not securities: “the Texas Securities Act specifically lists certain investments that are considered a security, and the first one listed is a limited partner interest.” However, he added that the agency “is the authority on securities in this state.”
Governor Greg Abbott has also directed state agencies to investigate The Meadow and signed a transparency law related to it. Some inquiries into the project have been resolved—including complaints under the Fair Housing Act and federal civil rights laws—while others are still ongoing.
