According to news reports, Texas Governor Greg Abbott and Attorney General Ken Paxton created a securities fraud case targeting EPIC City, a housing development and mosque project outside Dallas. A memo from Abbott's office was distributed to state agencies using language about foreign threats and undermining communities.
Travis IlesCommissioner of Texas State Securities Board
Daniel MittnachtPolitical adviser
Trevor EzellAbbott's general counsel
Caleb GunnelsAssistant general counsel
EPIC City developersDefendants in lawsuit
The facts
A nine-page memo outlined ways to thwart construction of East Plano Islamic Center, a housing development and mosque outside Dallas.2
The memo warned of foreign adversarial interests seeking to exploit Texas and undermine communities from inside.2
The memo had no letterhead, signature, or date but was distributed to agency heads by Abbott's office.2
Travis Iles, Texas State Securities Board commissioner, met in March 2025 with Mittnacht, Ezell, and Gunnels to review the memo.2
Iles's investigation found EPIC City's fundraising did not involve securities; investors purchased units guaranteeing discounted property lot purchases.2
Paxton's office issued a press release in October 2025 alleging EPIC City's developer violated securities laws without consulting agency officials.2
Paxton announced a securities fraud lawsuit against EPIC City developers on December 5, 2025.2
Iles wrote the subject line 'Horseshit' and assessment 'Corrupt' in an email after the lawsuit announcement.2
Who said what
These are statements and claims made by the people involved. They are reported, not verified.
Fox News Iles claimed the developer sold securities without meeting registration or exemption requirements.2
Travis Iles The assertion that EPIC City developers were selling securities is a wholly false statement wrongly attributed to him.2
Ken Paxton's office EPIC City's developer flagrantly and undeniably broke securities laws.2
Where the sources disagree
Whether EPIC City investors purchased securities Fox News reported they sold securities without registration [2]; Iles's investigation found investors purchased units guaranteeing property discounts, not securities [2]
How they headlined it
The same event, as each outlet put it. Marked words appear in only one outlet's headline.
Inside Greg Abbott and Ken Paxton’s Campaign to Manufacture a Fraud Case Against a Mosque
These outlets were found through Google News headlines. Google decides which outlets appear there, and they lean mostly one way, so this sheet can only be as balanced as the reporting it was built from. Leanings are AllSides Media Bias Ratings.
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