Texas Attorney General Ken Paxton has uncovered what he describes as “flagrant” securities law violations connected to a controversial Islamic center development known as EPIC City, setting the stage for potential legal action against the project’s developers.
Paxton’s office announced that it has identified evidence of both federal and state securities law violations by entities linked to the East Plano Islamic Center (EPIC) development. The Attorney General has formally requested the Texas State Securities Board (TSSB) to review his office’s findings and refer the case back for litigation.
“After a thorough investigation, it has become clear that the developers behind EPIC City flagrantly and undeniably violated the law,” said Paxton in a statement. “The bad actors behind this illegal scheme must be held accountable for ignoring state and federal regulations. In accordance with state law, the TSSB should review our findings and refer this matter to me for further legal action.”
What exactly prompted the investigation? The probe expanded significantly in March 2025, when Paxton’s office began requesting documents from local municipalities and other entities that might have coordinated with those involved in the project. This broader investigation ultimately revealed what the AG’s office describes as clear securities law violations by affiliated parties.
Legal Obstacles and Next Steps
Before Paxton can take legal action, his office requires a formal referral from the Texas State Securities Board — a procedural hurdle that now stands between the investigation’s findings and potential prosecution. The Attorney General has invited TSSB Chairman E. Wally Kinney and Commissioner Travis J. Iles to examine the evidence his office has gathered.
The investigation isn’t limited to securities violations. Paxton has also issued a Civil Investigative Demand (CID) to Community Capital Partners, LP (CCP), a corporate entity created by EPIC and reportedly the sole beneficiary of profits from the EPIC City development. This demand is part of a separate but related investigation into potential violations of Texas consumer protection laws.
“Under my watch, there will be zero tolerance for any person or entity that breaks Texas law,” Paxton stated. “My office has an open and ongoing investigation into EPIC City, which has raised a number of concerns, and this CID will help ensure that any potential violation of state law is uncovered.”
The case highlights the complex regulatory environment surrounding large-scale real estate developments, particularly those with religious affiliations. If the TSSB grants Paxton’s request for referral, it could signal the beginning of a significant legal battle that might reshape how such developments operate in Texas.
For now, the ball sits squarely in the Texas State Securities Board’s court, with the future of EPIC City hanging in the balance as state regulators determine whether Paxton’s evidence warrants formal legal proceedings.
