Texas Gov. Greg Abbott announced Thursday that the Texas State Securities Board is investigating the East Plano Islamic Center, a large Plano mosque that is affiliated with a Muslim-centric neighborhood that is being developed in North Texas.
Abbott’s announcement comes a few days after Texas Attorney General Ken Paxton said his office is investigating EPIC City, the development project.
In a Thursday news release, Abbott said the board was investigating EPIC “for potential failures to comply with applicable state and federal securities requirements, including protections against fraud.”
The mosque’s board of directors did not immediately respond to an email request for comment, and a call to its current board president was not immediately returned. A representative for Abbott declined to provide further details.
In the release, Abbott alleged that the group behind EPIC City, a Muslim-centric development project near Josephine, about 40 miles northeast of Dallas, may be “misleading investors.”
“The Texas State Securities Board is conducting a thorough investigation to ensure Texans are protected from financial harm that is alleged to have been caused by EPIC,” Abbott said in the release. “This is part of an ongoing investigation into allegations of illegal activities by EPIC. All entities in Texas must follow state law, not Sharia law.”
In a news release shared with The Dallas Morning News, the Texas State Securities Board confirmed it is investigating EPIC.
“The agency has opened an investigation into the East Plano Islamic Center and affiliated entities and individuals based on filings previously made with the United States Securities & Exchange Commission and other information,” according to the board.
Cristi Ochoa, deputy commissioner of the Texas State Securities Board, discussed the investigation in a phone call with The News. “The investigation is designed to make sure all applicable state securities requirements are being complied with, any potential investors receive full, complete and accurate information,” she said.
Ochoa declined to share why the board was investigating EPIC City specifically, or what information triggered its investigation.
The Texas State Securities Board is responsible for administering and enforcing the Texas Securities Act, according to the board’s website. “The Board adopts and periodically updates rules to ensure that investors are adequately protected and that unreasonable burdens on legitimate capital-raising activities are avoided,” according to the website.
Paxton announced on March 25 that his office is investigating whether the development project violates Texas consumer protection laws. Paxton is seeking information relevant to that investigation.
“Under my watch, there will be zero tolerance for any person or entity that breaks Texas law,” Paxton said in the release. Representatives for Paxton did not provide more details regarding the investigation.
EPIC City is a planned development of more than 1,000 homes, a K-12 faith-based school, a mosque, elderly and assisted living, apartments, clinics, retail shops, a community college and sports fields. Last year, some members of EPIC formed Community Capital Partners, a for-profit entity managing the EPIC City project.
Imran Chaudhary, president of Community Capital Partners, told The News in a statement that the group will work with Paxton’s office.
“We understand that there has been a lot of rumor-milling and misinformation circulated by many who are uninformed,” he said. “We look forward to working with the Attorney General to ensure that we are in legal compliance every step of the way and educating the broader community about our project.“
“EPIC City is going to be a role model community of thousands of Muslims living well-integrated,” Yasir Qadhi, resident scholar at EPIC, said while giving an update on the project in February.
“We are not forming a cult. We’re not forming big barriers between the rest of society,” he said. “We’re going to be giving back to this state and this country, and we’re going to be showing what it means to be a Muslim neighborhood.”
In February, Abbott posted about the development on X: “To be clear, Sharia law is not allowed in Texas. Nor are Sharia cities. Nor are ‘no go zones’ which this project seems to imply. Bottom line: The project as proposed in the video is not allowed in Texas.”
Sharia is the moral code for followers of Islam, but the interpretation and administration varies based on different sects, communities, countries and individuals, according to the Council on American-Islamic Relations. There is no single Sharia code, similar to how there is no uniform body of law for the thousands of Christian sects throughout the world.
On March 26, Abbott called on EPIC to cease and desist all funeral service operations. Abbott said in a news release that the mosque is operating a funeral home without an establishment license in violation of a Texas law that lays out the requirements for licensed funeral services.
“The group behind the proposed East Plano Islamic Center compound in Collin County is knowingly breaking state law in many ways, including by operating a funeral home without a license,” Abbott said. “This is a crime, and it will not be tolerated.”
Adrian Ashford covers faith and religion in North Texas for The Dallas Morning News through a partnership with Report for America.
