Texas Attorney General Ken Paxton has filed a lawsuit against the East Plano Islamic Center (EPIC), Community Capital Partners (CCP), and several of their executives, accusing them of violating Texas securities law by engaging in an illegal development scheme.
The defendants are behind EPIC City, a proposed mixed-use real estate development project 40 miles northeast of Dallas. The 402-acre property near the town of Josephine was purchased by EPIC, a mosque, and was to be managed by CCP Partners, an entity created by the mosque and headed by its former president of the board of directors, Yasir Qadhi. The proposed city was designed to include more than 1,000 homes, an Islamic religious school for grades K-12, a community college, retail stores, and a mosque.
In February, State Rep. Jeff Leach (R-Allen) wrote a letter to Paxton declaring, “Reports indicate that this large-scale real estate development may seek to incorporate elements of Sharia law into its operations. We must ensure that no entity attempts to circumvent state law under the guise of cultural or religious accommodation.”
Paxton began an investigation into EPIC City in March and requested a referral from the Texas State Securities Board (TSSB) regarding alleged violations of federal and state securities laws and regulations. The TSSB complied with the referral, which enabled Paxton to file his lawsuit.
In announcing the lawsuit, Paxton said the developers “funneled a significant amount of the funds to their own pockets. Further, for more than 10% of those who purchased securities, CCP failed to verify their status as ‘accredited investors,’ as required by law.
“The leaders behind EPIC City have engaged in a radical plot to destroy hundreds of acres of beautiful Texas land and line their own pockets,” said Paxton in a statement. “I will relentlessly bring the full force of the law against anyone who thinks they can ignore the rules and hurt Texans. The unlawful land project known as EPIC City will be stopped, and those responsible will be barred from ever creating another fraudulent operation like this again.”
Photo: Artist’s rendering of EPIC City
