A sweeping legal battle has erupted in Texas, with the Attorney General launching a lawsuit against the East Plano Islamic Center (EPIC), Community Capital Partners (CCP), and key leaders. The core accusation: a multi-million dollar scheme disguised as a grand development project known as “EPIC City.” The state alleges a deliberate deception of investors, promising a thriving community while allegedly diverting funds for personal gain.
The lawsuit, filed in Collin County, stems from a months-long investigation triggered by concerns raised by the Texas State Securities Board. Authorities claim EPIC and CCP aggressively sought investments – ranging from $40,000 to $80,000 per unit – without properly registering the securities or qualifying for necessary exemptions. This opened the door to widespread solicitation, a practice forbidden under the claimed exemptions.
Investigators discovered a pattern of misleading statements, beginning with the project’s location. Despite being informed by the city of Josephine, Texas, that the land lay outside its boundaries and utility district, marketing materials continued to portray EPIC City as being “in the heart” of the town. This deliberate misrepresentation fueled investor confidence based on false pretenses.
The alleged deception extended to the project’s appeal. Promotional materials reportedly targeted Muslim buyers, with early website content and videos branding EPIC City as the “epicenter of Islam in North America.” This focused marketing strategy, combined with the other alleged misrepresentations, raises serious questions about the intent behind the fundraising efforts.
Adding another layer to the allegations, CEO Imran Chaudhary publicly pledged to forgo a salary, promising to dedicate himself entirely to the project. However, the state claims he subsequently signed a contract guaranteeing himself $360,000 annually through a separate company – a detail conspicuously absent from investor documents. This alleged breach of trust further underscores the accusations of financial impropriety.
The state’s investigation revealed that over $1 million in investor funds were allegedly used for general operating expenses, exceeding the limits outlined in the offering documents. This diversion of funds, coupled with the unregistered securities and misleading marketing, prompted the Texas Securities Commissioner to refer the case to the Attorney General, citing “flagrant” violations.
The Attorney General is now seeking a complete halt to all fundraising activities related to EPIC City, along with a freeze on assets and the appointment of a receiver to oversee the situation. The lawsuit also demands the correction of misleading public statements, substantial civil penalties, and the full return of funds to investors – potentially numbering in the hundreds.
The legal action represents a determined effort to protect Texans from what the Attorney General describes as a “radical plot” to exploit both the land and its investors. The case promises a detailed examination of the financial dealings surrounding EPIC City and a reckoning for those accused of orchestrating the alleged scheme.
