D.C. Attorney General Brian L. Schwalb on Thursday launched a sweeping civil RICO assault on what his office calls a family-run real estate empire that trapped hundreds of renters in unsafe, unlivable apartments. The lawsuit names Ali "Sam" Razjooyan, his brother Eimon "Ray" Razjooyan and their mother, Houri Razjooyan, and alleges the trio built a portfolio of more than 70 mostly rent-controlled buildings and over 600 units while pulling in millions of dollars in public housing subsidies. Investigators say those properties racked up thousands of housing-code violations, with tenants living among rodents, mold, flooding and electrical hazards. The filing urges the court to dismantle the enterprise, order restitution and damages, and permanently bar the family from operating rental housing in the District.
The Office of the Attorney General filed a 112-page civil complaint in D.C. Superior Court that brands the Razjooyans' operation as "Ponzi-like." According to the complaint, the family allegedly relied on falsified financial statements and a maze of shell LLCs to secure inflated loans, then siphoned off the proceeds instead of fixing their buildings. The document says the enterprise took in more than $16 million from District housing subsidy programs and repeatedly refinanced properties at grossly inflated values, while hiding true ownership behind insider transfers, bankruptcy filings and single-asset companies.
As reported by WJLA, the suit zeroes in on scores of properties concentrated in Wards 7 and 8. The Razjooyans are accused of submitting false occupancy and repair certifications to both lenders and District housing programs to keep money flowing. WJLA reports that investigators documented more than 4,000 housing-code violations across the portfolio and described conditions in some buildings as "among the worst they have ever seen." The station also notes that this RICO action builds on earlier civil enforcement efforts the OAG brought against Razjooyan-controlled entities in 2024 and 2025.
Alleged Pattern And Problem Properties
The complaint calls out several buildings by name, including 1644–1656 W Street SE and the Minnesota Commons cluster along Minnesota Avenue NE. According to the complaint, repeated inspections at these and other sites turned up infestations, standing water and missing safety equipment. Investigators say they observed roaches in nearly every room of some units, along with broken or missing windows and unsecured doors that allowed anyone to walk in. The filing also alleges illegal, unpermitted construction intended to make certain units look freshly renovated while other occupied apartments remained in serious disrepair.
City Crackdown And Mounting Fines
The D.C. Department of Buildings says a multiday inspection blitz focused on Razjooyan-associated properties led to more than 2,000 Notices of Infraction and roughly $2.3 million in fines. The Department of Buildings announced that enforcement push in mid-2025 as part of a targeted campaign against repeat violators. Separate coverage by the Washington City Paper has tracked the swelling pile of fines and described alleged tactics such as rapid-fire ownership transfers that advocates say helped keep violations on the books while buildings stayed in poor condition.
What D.C. Wants From The Court
The lawsuit asks a judge to effectively dismantle the Razjooyan enterprise and to claw back money for both tenants and the District. According to WJLA, the complaint seeks restitution, civil penalties and a permanent ban on the defendants owning or managing residential rental properties in D.C. It also demands a jury trial, along with costs and other equitable relief aimed at forcing repairs and returning misused subsidy dollars. If the court agrees, dozens of buildings could land in receivership with court-appointed managers taking over to stabilize conditions for tenants.
Tenants And Advocates Say It Is About Time
Tenant leaders and housing advocates have pushed for tougher action for years, arguing that piecemeal enforcement left renters cycling through the same hazards again and again. Previous coverage documented tenants finding mice in ovens, living with missing windows and walking past piles of uncollected trash, WTOP reported, while earlier stories highlighted prior OAG lawsuits and tenant accounts of long-term neglect. Advocacy groups are calling the new RICO filing the most aggressive step yet against what critics argue is a business model that cashes in on subsidized rents without delivering basic, habitable housing.
The RICO complaint is dated February 12, 2026, and was filed in D.C. Superior Court. Schwalb's office says it will push for a swift review and clear accountability. The defendants named in the suit had not issued any public response as of publication. The case now moves into what is likely to be a long legal fight, with judges ultimately deciding whether civil RICO and related claims are enough to unravel the alleged enterprise. For tenants who say they have endured years of substandard conditions, the lawsuit represents the broadest legal challenge yet to the Razjooyan network's grip on their homes.
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