Attorney General Ken Paxton has filed a lawsuit against Community Capital Partners and its affiliates, challenging the legality of their fundraising for The Meadow, a large residential development project in the Dallas–Fort Worth area. The Meadow, previously known as Epic City, is planned by the East Plano Islamic Center and Community Capital Partners to include more than 1,000 homes along with a mosque, faith-based school, senior living facilities, apartments, clinics, retail space, a community college, and sports fields on 402 acres in Collin and Hunt counties.
The lawsuit claims that Community Capital Partners (CCP), led by Imran Chaudhary, violated the Texas Securities Act by selling unregistered securities. According to Paxton’s office, investors were asked to purchase an $80,000 limited partnership share in CCP to reserve a lot. The attorney general argues that 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 disagrees with Paxton’s interpretation. After investigating the matter for several months, the agency determined that the limited partnership interests did not qualify as securities under Texas law—even though they were marketed similarly to investment contracts. The board did not elaborate on its reasoning but said it had communicated its findings to Paxton’s office before the lawsuit was filed. The agency also suggested any legal action might be better pursued under the Texas Deceptive Trade Practices Act rather than securities regulations.
Community Capital Partners responded: “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 dispute: “the Texas Securities Act specifically lists certain investments that are considered a security, and the first one listed is a limited partner interest.” However, he acknowledged that “the agency is the authority on securities in this state.”
Governor Greg Abbott has also directed state agencies to investigate The Meadow project and has signed legislation aimed at increasing transparency regarding it. Some investigations—such as those related to Fair Housing Act compliance and federal civil rights—have been concluded; others remain ongoing.
