Texas Attorney General Ken Paxton filed a lawsuit Thursday against Colony Ridge, the development that has attracted many illegal immigrants, for alleged fraudulent practices.
"Colony Ridge's business model is predicated on churning land purchasers through a foreclosure mill. Namely, Colony Ridge targets foreign born and Hispanic consumers with limited or no access to credit with promises of cheap, ready to build land and financing without proof of income," the lawsuit states.
The development allegedly uses specific financial and marketing strategies in order to attract illegal immigrants, such as selling plots of land for down payments of $500 with approximately 13% interest rates, as well as a certain financing method in order to allow illegal immigrants to buy land. This has allowed Colony Ridge, sprawling across 60 square miles or so, to grow to around 70,000 residents.
"A monthslong investigation by the Office of the Attorney General found that the developer has made numerous false, misleading, and deceptive sales, marketing, and lending practices that enabled their business model," the Attorney General's press release says.
"Colony Ridge has been flagrantly violating Texas law. The development profited from targeting consumers with fraudulent claims and predatory lending practices" said Paxton. "Their deceptive practices have created unjust and outsized harms. Nearby communities have borne a tremendous cost for the scheme that made Colony Ridge's developers a fortune," the press release continues.
Jeremy Frankel ✉
Jeremy Frankel is a Newsmax writer reporting on news and politics.
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