Texas Sues East Plano Islamic Center and Developers Over Fundraising
Texas Attorney General Ken Paxton filed a 21 page lawsuit in Collin County on December 5 targeting the East Plano Islamic Center and related development entities, alleging violations of state securities law and fraudulent fundraising tied to a 402 acre development. The action could affect local investors, future homebuyers and the timeline for a large mixed use project once branded as EPIC City and now called The Meadow.
The Texas Attorney General filed suit in Collin County against the East Plano Islamic Center, Community Capital Partners LP and EPIC Real Properties Inc., accusing the defendants of securities law violations and fraudulent fundraising connected to a proposed 402 acre development in the Plano area. The complaint, filed December 5, alleges the project included plans for more than 1,000 homes, a K through 12 faith based school, a mosque, senior and assisted living, apartments, clinics, retail, a community college and sports fields.
The 21 page complaint details fundraising arrangements that required investors to purchase sizable shares, giving the example of an 80,000 dollar payment credited toward a lot purchase. The suit alleges developers failed to verify accredited investor status for some purchasers and improperly funneled investor funds to cover personal payments and operating costs. The state action follows investigations by multiple state agencies and mentions prior federal interest in the project.
Community Capital Partners provided a response that it was reviewing the filing. The filing begins a civil enforcement pathway that could lead to restitution, fines and injunctions if the court finds violations of Texas securities statutes. For local stakeholders, the immediate consequences may include halted or slowed development approvals, delayed construction, and uncertainty about the status of funds already invested in the project.
Prospective homebuyers and current investors in Collin County face practical questions about contractual rights, timelines and whether escrowed or credited payments remain secure. Local government bodies that have considered zoning and infrastructure support for the Meadow should anticipate requests to pause approvals while legal questions are resolved. The case also touches on broader community issues, including trust in faith based organizations that act as project sponsors, and how regulatory oversight intersects with local development ambitions.
As the lawsuit proceeds, residents and investors should monitor filings with Collin County court clerks and follow public notices from the Attorney General and local officials. The outcome will shape both the immediate fate of the Meadow project and longer term expectations for large private developments in the region.
