State securities board says its staff found the EPIC City units were not securities
Texas State Securities BoardTexas state securities regulator
The Texas State Securities Board says its staff concluded the EPIC City units were not securities under Texas law and calls a published account of the commissioner's findings false.
Responding to
Community Capital Partners, the developer of EPIC City, violated Texas securities law, including through fraudulent practices while soliciting funds.
“After a months-long and thorough investigation, the staff in fact concluded that, given the evidence available to date, the sales of limited partnership interests did not constitute securities under the purview of the Texas Securities Act, despite being treated and marketed as such to investors.”
Official statement
Where this statement fits
Paxton sued EPIC City developers for securities fraud after the state securities board concluded the units were not securities
Texas Attorney General Ken Paxton sued the developers of the EPIC City housing project near Plano for securities fraud in December 2025. The Texas State Securities Board says its staff had concluded the project's land units were not securities and told Paxton's office so before he filed. A Texas Monthly report says advisers to Gov. Greg Abbott pressed the agency to refer the case.
Source and context
Official statement
About this source
News release from the Texas State Securities Board, issued in the name of Securities Commissioner Travis Iles, responding to a December 5, 2025 Fox News article about the attorney general's EPIC City lawsuit. It describes the board's own investigation and its communications with the attorney general's office. The release no longer displays on the board's website; the archived copy shows it as published.
Archived copy (opens in a new tab)Before the quotation
The board issued the release three days after the lawsuit, responding to a Fox News article that said Commissioner Travis Iles had identified violations and referred the case.
After the quotation
The release says Iles advised the attorney general's office that claims might be more sustainable under the Texas Deceptive Trade Practices Act.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The reference point is the Texas government's pursuit of a securities fraud case against the EPIC City developers. The board says its staff concluded the units "did not constitute securities under the purview of the Texas Securities Act" and that it told the attorney general's office so before the suit, so we labeled it Challenged characterization. The closest competing label is Condemned; it loses because the release disputes the legal theory and the account of the board's findings without denouncing the lawsuit itself.
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- Ken Paxton
More from this case
Read the full caseAbbott's office says the governor will act against any group that violates state law
“Governor Abbott will take action against any group that seeks to violate our Constitution and laws, regardless of faith.”Read statement
Paxton says EPIC City's leaders engaged in "a radical plot"
“The leaders behind EPIC City have engaged in a radical plot to destroy hundreds of acres of beautiful Texas land and line their own pockets”Read statement
Paxton says EPIC City developers "flagrantly and undeniably violated the law"
“After a thorough investigation, it has become clear that the developers behind EPIC City flagrantly and undeniably violated the law”Read statement
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The Dispute Index. "State securities board says its staff found the EPIC City units were not securities". First published: 2026-10-17. Last updated: 2026-10-17. https://disputeindex.com/events/5972-the-texas-state-securities-board-says-its-staff