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Texas officials fabricated fraud case against Muslim housing project, memo shows

A leaked state memo and a regulator's internal emails reveal Gov. Abbott's and AG Paxton's office engineered a securities-fraud case to block the EPIC City mosque development.

newest coverage 11h agosummary written 1d ago4 pieces NewswiresMastodon

What to know

  • An unsigned, undated memo circulated by Gov. Greg Abbott's office allegedly directed multiple Texas agencies to find ways to block the EPIC City mosque and housing development.
  • Travis Iles, then head of the Texas State Securities Board, found no evidence EPIC City's fundraising involved securities, but was pressured to refer the matter to AG Ken Paxton anyway.
  • Paxton sued the developers for securities fraud in December 2025; Iles privately called the case "corrupt" and publicly disputed claims attributed to him before being pushed to resign.
  • The memo's language reportedly reappeared in press releases from other agencies including the Texas Funeral Service Commission, Texas Workforce Commission, and Texas Rangers, suggesting a coordinated campaign.

“foreign adversarial interests”

Unsigned Abbott-office memo, internal state memorandum · New Republic ↗

Ken PaxtonKen Paxton Texas Attorney GeneralGreg AbbottGreg Abbott Texas GovernorTravis Iles Former commissioner, Texas State Securities BoardDaniel Mittnacht Political adviser to Abbott

Texas officials fabricated fraud case against Muslim housing project, memo shows
New Republic

How it unfolded 1 development · click the chart to see its coverage articlesposts

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  1. 1

    New Republic details how the mosque case was fabricated

    Citing a Texas Monthly review of the unsigned memo and internal communications, New Republic reported that Abbott's and Paxton's offices engineered the securities case as part of a broader campaign targeting Texas's Muslim community.

    “Horseshit…”
    — Travis Iles, Former Texas State Securities Board commissioner · source

    1. 1 outlet first by New Republic, 1d ago · read ↗

    • Texas Governor Greg Abbott and Attorney General Ken Paxton concocted a securities fraud case as part of a sweeping crusade to target the state’s growing Muslim community.

      newrepublic@threads.netMastodon1d agoview on Mastodon ↗
  2. background

    Iles quietly steps down as securities commissioner — Travis Iles left his post as commissioner of the Texas State Securities Board and departed the agency.

  3. background

    Iles publicly disputes the fraud claim, is pushed to resign — Iles issued a press release stating the claim that EPIC City's developers were selling securities was "a wholly false statement" wrongly attributed to him by Fox News; he was soon asked to resign.

  4. background

    Iles privately calls the lawsuit "corrupt" — After Fox News reported Iles had claimed the developer 'sold securities without meeting registration or exemption requirements,' Iles sent an internal email titled "Horseshit," linking the article and calling the case "corrupt."

  5. background

    Paxton files securities-fraud lawsuit against EPIC City — Despite Iles's team concluding the project's fundraising units were not securities, and despite Iles urging a Deceptive Trade Practices Act claim instead, Paxton announced a securities-fraud lawsuit against the developers.

  6. background

    Paxton's office alleges EPIC City broke securities laws — Paxton's office issued a press release claiming EPIC City's developer had "flagrantly and undeniably" violated securities laws without first discussing findings with the securities regulators who had actually investigated.

  7. background

    Abbott aides brief regulator on anti-EPIC City memo — Travis Iles met with Abbott adviser Daniel Mittnacht, Abbott general counsel Trevor Ezell, and assistant counsel Caleb Gunnels to go over an unsigned memo outlining ways to thwart the EPIC City mosque project; Iles then assembled six regulators to investigate its investors.