Paxton sues Plano mosque in EPIC City development lawsuit, alleges marketing of a “Texas Muslim-only community”
Texas Attorney General Ken Paxton filed a civil complaint Dec. 5, 2025, accusing EPIC and associated developers of selling unregistered securities, deceptive fundraising and marketing — including promoting the project as a “Muslim-only” community — and seeks to stop the projects.
Key takeaways
- Who filed: Texas Attorney General Ken Paxton filed a civil complaint Dec. 5, 2025, after a months-long securities probe. KERA News report
- Who’s named: The suit names the East Plano Islamic Center (EPIC), Community Capital Partners and several individual leaders tied to EPIC City and The Meadow. KERA News report
- Main allegations: Selling unregistered securities, deceptive marketing (including alleged “Muslim-only” promotion), misrepresenting project location and misleading investors. KERA News report
- Remedies sought: Temporary restraining order, permanent injunction, restitution, civil penalties and bans on similar enterprises in Texas. KERA News report
Key information
Who filed the case: Texas Attorney General Ken Paxton filed a civil complaint on Dec. 5, 2025, following a months-long securities probe. KERA News report
Who is named: The suit names the East Plano Islamic Center (EPIC), an affiliated corporate entity called Community Capital Partners, and several individual leaders tied to the projects. KERA News report
Main claims: The complaint accuses defendants of selling unregistered securities, engaging in deceptive marketing and fundraising practices, misrepresenting project location, and promoting the development as a “Muslim-only” community in ways the state says violate law. KERA News report
Remedies sought: Paxton seeks a temporary restraining order to halt activity, a permanent injunction to stop the projects, restitution and civil penalties, and a ban on similar future enterprises in Texas. KERA News report
Who is being sued and what are the projects?
Paxton’s complaint targets EPIC — the East Plano Islamic Center — and Community Capital Partners, which the AG’s office says was set up to promote and manage EPIC City and a phase called The Meadow. EPIC City was promoted as a large, multi-hundred-acre master-planned community in North Texas, and The Meadow was described as a component aimed at families and investors. KERA News report
Promotional materials and online videos cited by the AG’s office pitched The Meadow as part of a planned community with religious facilities and amenities tailored for Muslim families and investors. State officials say those materials gave the impression the developments would be limited to or primarily for people of the Muslim faith. KERA News report
Core allegations in Paxton’s lawsuit
1. Securities fraud and registration violations
Paxton alleges EPIC and Community Capital sold or offered unregistered securities tied to The Meadow and EPIC City in violation of the Texas Securities Act. The complaint says the defendants made fraudulent statements to investors and failed to verify whether purchasers qualified as “accredited investors” when required — acts the suit says violate state registration and antifraud protections. KERA News report
2. Misleading investment solicitations
The AG’s office says defendants used undisclosed online promotional videos and other materials to solicit investor funds. The complaint alleges the project’s location was misrepresented — promoted as being in Josephine, Texas, while the land sits in unincorporated territory between Collin and Hunt counties — a detail Paxton’s office says was hidden from prospective buyers. Paxton’s team frames these and other alleged misrepresentations as part of a scheme to enrich the project leaders at investors’ expense. KERA News report
3. “Muslim-only” marketing and discrimination concerns
A central and politically sensitive claim is that EPIC City was marketed as a “Muslim-only” community. Paxton’s office argues that advertising a housing development as reserved for people of a particular religion runs afoul of federal fair housing laws and Texas anti-discrimination principles. The complaint characterizes such marketing as unlawful discriminatory advertising or steering, using that point to support arguments for halting the project. KERA News report
4. Characterization as a fraudulent land scheme
Paxton called the plan a “radical plot” to take over land and “line their own pockets,” saying the development amounted to a fraudulent land and investment scheme rather than a bona fide community project. The lawsuit seeks to treat the activities as securities and consumer-protection violations that warrant restitution and other penalties. KERA News report
How the investigation unfolded
Paxton’s office opened a securities probe in March 2025. Investigators received more than 750 documents and written responses from Community Capital and related parties. In November 2025 Paxton wrote to the Texas State Securities Board outlining evidence of possible violations, and the lawsuit followed in early December. The complaint is based on the office’s review of promotional materials, investor communications and internal documents collected during the probe. KERA News report
Legal basis and remedies sought
Paxton’s complaint relies on the Texas Securities Act for registration and antifraud claims, plus consumer-protection theories similar to the Texas Deceptive Trade Practices–Consumer Protection Act. The suit also cites fair housing and non-discrimination principles as part of its argument that marketing a religiously exclusive community is unlawful. The state asked the court for an immediate temporary restraining order to stop sales and marketing, a permanent injunction to end the projects, restitution for investors, civil penalties, and orders barring defendants from similar activities in Texas. KERA News report
EPIC and developers’ response
As of the latest reporting, EPIC, Community Capital Partners and the individual leaders named in the lawsuit had not issued a detailed public response to the AG’s complaint. The reporting notes that the claims in the complaint are allegations and that no court has yet ruled on liability. The defendants may file an answer or motions in state court in the weeks ahead. KERA News report
Status of the case
The lawsuit is filed and Paxton is actively seeking a temporary restraining order and a permanent injunction. No judge has ruled on those motions, and no trial date or settlement has been reported. The Texas State Securities Board’s own stance or any separate enforcement action has not been publicly detailed beyond Paxton’s November letter to the agency. KERA News report
Context — religion, housing and the law
Religious groups can build housing and community facilities for members, but federal and state law bar explicitly excluding people from housing based on protected traits like religion. Advertising a development as open only to a single faith can trigger fair housing and anti-discrimination rules. Paxton’s office is using that legal framework to argue that EPIC’s marketing crossed a legal line and that the same behavior paired with alleged securities violations justifies state action. KERA News report
Implications for San Diego, California
Economic impact: San Diego’s real estate market and Muslim community involvement in housing and investment mean a high-profile case could influence local fundraising and land-development practices.
Political consequences: Local officials and regulators may look to state actions like this for guidance on monitoring developments that market to a specific faith or demographic.
Social effects: Muslim and faith communities will likely watch the case for its message about inclusion and property rights; outcomes stressing limits on religion-based marketing could reassure residents about exclusionary projects.
Cultural relevance & practical applications: Debates about faith-based community planning versus unlawful segregation will resonate in San Diego. Real estate agents, nonprofits and faith groups should review advertising and investor solicitation practices and consult legal counsel to structure offerings that comply with fair housing and securities laws.
For continued coverage
Legal filings, court motions and any response from EPIC or Community Capital will be key to watch. Paxton’s request for emergency relief could prompt a quick hearing in Texas court, and any ruling will shape the immediate fate of EPIC City and similar projects. KERA News report
“The plan was a radical plot to take over land and line their own pockets,” the complaint quotes Paxton characterizing the project as a fraudulent land and investment scheme.
