Texas AG Paxton sues EPIC City developers after probe finds alleged fraud, misleading Muslim-only marketing
Texas Attorney General Ken Paxton filed a lawsuit on Friday against the East Plano Islamic Center EPIC Region Capital Partners CCP and several associated leaders accusing them of running an illegal securities and land evolution scheme tied to a proposed -acre region known as EPIC City The lawsuit filed in Collin County follows a monthslong examination and a referral from the Texas State Securities Board The state alleges the defendants raised tens of millions of dollars while violating securities laws misleading investors about the project s nature and location and misrepresenting how funds would be used 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 Paxton mentioned I will relentlessly bring the full force of the law against anyone who thinks they can ignore the rules and hurt Texans According to the Verified Petition CCP sold capital interests for to despite failing to register the securities or qualify for federal exemptions MUSLIM DAD SONS ALLEGEDLY DROWNED TEEN OVER 'WESTERN' LIFESTYLE REFUSING TO WEAR HEADSCARFThe state declares the group broadly solicited investors through meetings social media and online promotions which is activity not allowed under the exemptions they claimed Investigators also allege the developers failed to take reasonable initiatives to verify purchasers were accredited investors with documentation missing or inadequate for a number of buyers The petition says the project was advertised as being in the heart of Josephine Texas even after the city described developers in February that the land was not within its limits or utility district Marketing materials allegedly continued to make the claim FEDERAL JUDGE ALLOWS TEXAS AG TO CHALLENGE HARRIS COUNTY BAIL REFORMS UNLEASHING CRIMINALS The state further points to alleged promotional materials that appeared to target Muslim buyers including early website language and videos describing EPIC City as the epicenter of Islam in North America Paxton s office also alleges CEO Imran Chaudhary publicly promised he would take not a cent in salary but later signed a contract paying him a year through a separate company a compensation arrangement not disclosed in written offering materials Investigators allege more than million in investor funds were withdrawn for general operating expenses exceeding what offering documents described Texas Securities Commissioner Travis Iles alleges EPIC entities sold securities without meeting registration or exemption requirements and referred the matter to Paxton after identifying flagrant violations Paxton first broadcasted his inspection in March and sought the referral in October after uncovering additional concerns FEDERAL JUDGE RULES LAW REQUIRING DISPLAY OF TEN COMMANDMENTS IN TEXAS CLASSROOMS UNCONSTITUTIONALPaxton is asking the court to halt all fundraising tied to the project freeze assets appoint a receiver correct masses statements and impose civil penalties of up to per violation The suit also seeks the return of investor funds CLICK HERE TO GET THE FOX NEWS APPEPIC City since rebranded as The Meadow was marketed as a master-planned expansion spanning Hunt and Collin counties Court filings show hundreds of investors purchased units Fox News Digital has requested comment from EPIC CCP and Paxton s office The full lawsuit can be read here
