Texas Officials Pursued Fraud Case Against Mosque Despite Internal Doubts
Texas Governor Greg Abbott and Attorney General Ken Paxton pursued a securities fraud case against the East Plano Islamic Center despite internal findings that its fundraising did not involve securities. A memo circulated among state agencies outlined possible ways to block the mosque and housing development outside Dallas, and its language later appeared in official inquiries. Paxton's office announced fraud allegations after regulators had raised doubts about the case.
A nine-page unsigned memo circulated among Texas agency leaders by Governor Greg Abbott’s office and advisers described possible ways to stop the East Plano Islamic Center project. It warned that foreign adversaries might exploit Texas and weaken communities from within. Similar wording later appeared in official inquiries by several state bodies.
In March 2025, securities board commissioner Travis Iles met with political adviser Daniel Mittnacht, Abbott counsel Trevor Ezell, and assistant counsel Caleb Gunnels. Iles’s team concluded EPIC City’s fundraising involved lot-purchase rights, not securities. Paxton’s office later alleged securities violations without consulting regulators. Iles called the portrayal corrupt and false, then resigned.
The case may deepen distrust among Muslim and immigrant communities in Texas, who could feel singled out by state scrutiny. It may also affect how regulators handle politically sensitive investigations, potentially discouraging officials from contradicting senior leaders. Local housing and religious development could face delays or heightened legal costs. Broader public confidence in impartial enforcement may suffer if internal doubts and external allegations diverge.