Texas Attorney General Ken Paxton has sued the Colony Ridge development in Liberty County for deceptive trade practices, fraud in real estate transactions, and other violations of Texas and federal law.
Colony Ridge is a sprawling real estate development northeast of Houston that has expanded quickly in recent years. In an October 2023 letter to Members of the United States Congress and fellow Texas leadership, Attorney General Paxton noted that the development’s rapid growth has presented major problems. He expressed concerns, stating, "The development appears to be attracting and enabling illegal alien settlement in the state of Texas and distressing neighboring cities and school districts."
According to the lawsuit, “Colony Ridge’s business model is predicated on churning land purchasers through a foreclosure mill." The document also highlights how Colony Ridge targets specific demographics, stating, “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.”
Attorney General Paxton condemned the practices of Colony Ridge, stating, “Colony Ridge has been flagrantly violating Texas law. The development profited from targeting consumers with fraudulent claims and predatory lending practices." He added, “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 lawsuit further reveals that the developer misrepresented the conditions of the land and community, often failing to provide promised infrastructure like sewer, water, or electricity, rendering the land unusable for buyers.
The Office of the Attorney General's monthslong investigation uncovered numerous false, misleading, and deceptive sales, marketing, and lending practices at Colony Ridge, enabling the developers to exploit vulnerable consumers and profit from fraudulent activities.