Attorney General Ken Paxton and the Texas State Securities Board are in disagreement over a lawsuit filed by Paxton concerning The Meadow, a large-scale residential development in the Dallas–Fort Worth area. The project, formerly called Epic City, is led by the East Plano Islamic Center and Community Capital Partners. It plans to develop more than 1,000 homes, a mosque, faith-based school for grades K-12, senior living facilities, apartments, clinics, retail spaces, a community college and sports fields on 402 acres across Collin and Hunt counties.
The lawsuit claims that Community Capital Partners (CCP), under the leadership of Imran Chaudhary, and related entities violated the Texas Securities Act by selling unregistered securities as part of an illegal development scheme. According to Paxton’s office, investors had to buy an $80,000 limited partnership share in CCP to reserve a lot. The suit alleges these offerings were not properly registered and that buyers’ qualifications as accredited investors under SEC Regulation D were not verified. Paxton contends that CCP should not receive exemptions typically granted for private offerings.
The Texas State Securities Board has challenged Paxton’s assertions. After conducting its own investigation over several months, the board determined that the limited partnership interests offered did not meet the definition of securities under Texas law—even though they were marketed similarly to investment contracts. The agency did not provide details about its decision but stated it informed Paxton’s office of its findings before he filed the lawsuit. The board also suggested any legal action might be better pursued under the Texas Deceptive Trade Practices Act instead of securities law.
Community Capital Partners responded with a statement: “The fact that multiple reviews were completed, and that these findings were known before litigation was filed, raises serious and unavoidable questions about why this matter is now being framed as a securities case, and why this project continues to be targeted despite repeated reviews finding no securities violations.”
Sam Edwards, a Texas-based fraud and securities attorney, commented on the situation: “I’m not sure how the state board determined the investments didn’t qualify as securities because ‘the Texas Securities Act specifically lists certain investments that are considered a security, and the first one listed is a limited partner interest.’” He added that nonetheless “the agency ‘is the authority on securities in this state.’”
Governor Greg Abbott has directed state agencies to investigate The Meadow further and signed a transparency law connected to it. Some investigations have concluded—including those related to Fair Housing Act complaints and federal civil rights—but others are still ongoing.
