Paxton called the alleged misconduct "flagrant," arguing that state law requires a TSSB referral before his office can bring a securities action.

"After a thorough investigation, it has become clear that the developers behind EPIC City flagrantly and undeniably violated the law," said Attorney General Paxton.

"The bad actors behind this illegal scheme must be held accountable for ignoring state and federal regulations. In accordance with state law, the TSSB should review our findings and refer this matter to me for further legal action.

EPIC City is a 402-acre master-planned community near Josephine, Texas, spanning Collin and Hunt Counties.  Materials describe housing (single-family, townhomes, multifamily), a mosque, schools, parks, senior living, and retail.  The project vehicle, Community Capital Partners, LP (CCP), has been described in EPIC's promotions as created by EPIC, with EPIC as the beneficiary of project profits.

In March, Paxton opened a consumer-protection probe and served a Civil Investigative Demand (CID) on CCP, the vehicle formed to develop EPIC City.  The March 25, 2025 press release highlighted EPIC's own promotional statements that CCP was "created by EPIC" and that EPIC is the "only beneficiary of profits" from the project.

Two days later, on March 27, Gov. Greg Abbott announced that the TSSB would investigate EPIC and "affiliated entities for potential failures to comply with applicable state and federal securities requirements, including protections against fraud."  In the same press release, Abbott said he sent a letter dated March 26 requesting EPIC "cease and desist funeral service operations."  He also said that "a dozen state agencies" were investigating "serious legal issues" concerning the potential illegal activities involving the alleged purchase of Texas property by "foreign adversaries ... taking place at EPIC."

On April 14, 2025, Paxton expanded his investigation, demanding communications from Plano, Richardson, Wylie, and Josephine due to alleged local support for the project.  The requests sought emails and records referencing EPIC, EPIC City, and CCP.