Texas Attorney General Launches Investigation into EPIC City Developers

Texas Attorney General Ken Paxton has initiated an investigation into the developers of EPIC City, a proposed Muslim-centric community located near Josephine, Texas. The inquiry centers on potential violations of the Texas Securities Act, with Paxton’s office alleging both procedural violations and fraudulent conduct. The developers, Community Capital Partners, have denied any wrongdoing and are cooperating with the ongoing investigation.

The Texas Attorney General’s office revealed that it has identified evidence against the developers, though specific laws or regulations purportedly violated were not detailed. In a letter addressed to two members of the Texas State Securities Board, Paxton stated that he is considering a lawsuit against the developers, pending further information from the board.

EPIC City is envisioned as a comprehensive development featuring over 1,000 homes, a K-12 faith-based school, a mosque, assisted living facilities, retail spaces, and sports fields. The project aims to create a vibrant community just 40 miles northeast of downtown Dallas.

As part of the investigation, Paxton’s office has requested documentation related to the securities offerings of Community Capital Partners. The firm, led by its president Imran Chaudhary, asserts that it is confident no charges will be filed. Chaudhary noted that the attorney general’s office first contacted them on March 24, 2025, followed by outreach from the Texas State Securities Board on April 1, 2025. “We have provided over 750 documents and written responses to their inquiries, and we remain committed to cooperating fully,” he stated.

Investors looking to reserve lots in EPIC City must purchase a share in Community Capital Partners for $80,000, which will be credited toward the future purchase of a home. Under guidelines from the U.S. Securities and Exchange Commission, these investors must be classified as accredited, meaning they generally require a net worth exceeding $1 million or a minimum individual income of $300,000.

In the event that the development of EPIC City does not proceed, the land will be sold, and investors will receive refunds as outlined in the investor documents.

In March 2025, Paxton issued a civil investigative demand to Community Capital Partners seeking materials pertinent to the inquiry into potential violations of Texas consumer protection laws. He emphasized the need for accountability, stating, “The bad actors behind this illegal scheme must be held accountable for ignoring state and federal regulations.”

Earlier, Texas Governor Greg Abbott indicated that a dozen state agencies are investigating possible illegal activities connected to EPIC City and its affiliated entities. Abbott has also raised concerns that the developers may be infringing upon religious freedom laws by using religion as a basis for segregation.

This investigation into Community Capital Partners reflects broader concerns regarding the regulatory framework surrounding real estate developments. As the situation evolves, further developments are anticipated from both the Texas Attorney General’s office and the Texas State Securities Board, which will play a crucial role in determining the path forward for EPIC City.