Texas AG Probes Muslim-led Dallas Neighborhood Plan

A sprawling faith-based residential development northeast of Dallas is facing legal scrutiny, adding fuel to a controversy that has drawn national attention in recent months.

Texas Attorney General Ken Paxton has launched an investigation into EPIC City, a planned Muslim-centric neighborhood in Josephine, about 40 miles from downtown Dallas, The Dallas Morning News reported.

The development is led by Community Capital Partners, an entity formed by the East Plano Islamic Center, and is expected to include more than 1,000 homes, a mosque, schools, assisted living facilities, retail, clinics and recreational amenities across Collin and Hunt counties.

Paxton issued a civil investigative demand to Community Capital Partners, citing potential violations of state consumer protection laws.

Promotional materials for the project described the East Plano Islamic Center as the sole beneficiary of its profits — raising red flags, according to the AG’s office. Paxton said his office would pursue any violations of state law uncovered in the course of the investigation.

The probe follows online backlash that began after videos promoting the neighborhood went viral, drawing millions of views and criticism from right-wing figures and elected officials. State Rep. Jeff Leach, a Republican from Allen, previously called on Paxton to investigate whether the development would incorporate Sharia law, a charge that EPIC City’s supporters have rejected.

Community Capital Partners will work with Paxton’s office to cooperate with the investigation to correct what president Imran Chaudhary characterized as misinformation and “rumor-milling.”

The investigation comes as the East Plano Islamic Center has moved forward with two additional developments, EPIC Ranches One and Two, which would span 200 acres near the main site.

Other state leaders also weighed in, including Texas Governor Greg Abbott, who suggested in a post on X that the legislature may introduce new restrictions, along with a pending bill meant to ban foreign buyers, in response to projects like EPIC City. It has not been confirmed that those behind the project are not U.S. citizens.

— Judah Duke