In a bold legal move, Attorney General Brian L. Schwalb has launched a RICO lawsuit aimed at dismantling what's being labeled as a "slumlord empire" in DC, spearheaded by Ali "Sam" Razjooyan, Eimon "Ray" Razjooyan, and Houri Razjooyan. The suit, a first of its kind, accuses the Razjooyans of controlling over 70 rent-controlled buildings in Washington, DC, and engaging in a web of financial fraud and substandard property maintenance that's left tenants in dire conditions. This groundbreaking lawsuit is seeking to tear down the fraudulent real estate operations, ban the Razjooyans from managing rental properties, and secure restitution for affected tenants, along with penalties and damages for the District, as reported by the Office of the Attorney General.
According to the OAG, the Razjooyans acquired primarily rent-controlled buildings and then used false promises of renovation to secure loans, defrauding lenders, the District government, and putting tenants at risk. District agencies have been duped out of over $16 million by the family, based on false claims of safety and habitability—a critical condition for the properties to qualify for housing subsidies. The alleged Ponzi-like scheme, as detailed by the Attorney General's office, has resulted in numerous apartment buildings falling into disrepair, where hundreds of tenants, many from vulnerable demographics, have endured horrific living conditions, from rodent infestations to gas leaks and unsafe electrical setups.
Earnest Wilkerson, President of the Minnesota Commons Tenant Association, publicly detailed the decline of his residence under Razjooyan's ownership, recounting ceased maintenance, pest control treatments, and a troubling build-up of trash, which was echoed in the statements obtained by the Office of the Attorney General. Likewise, the DC Department of Buildings Director Brian J. Hanlon recognized the culmination of years of inspections of over 100 properties into this significant legal action, highlighting the citywide effort to hold the negligent landlords accountable. Megan Browder, from Legal Aid DC, equally commended these efforts, calling the Razjooyans' business operations a blight upon the city’s housing system.
The depth of the Razjooyans' real estate fraud amounts to allegations of racketeering activity punishable under the RICO Act, a federal statute typically reserved for large-scale misconduct and organized crime. The OAG has cited over 4,000 housing code violations in the family's properties, numerous instances of defrauding housing assistance programs, and even a fire likely sparked by shoddy wiring as part of the illegal construction efforts detailed in the lawsuit. Tenants have been subjected to a myriad of safety hazards, further constricting DC's already limited supply of safe, affordable housing, according to the Attorney General's release.
This significant RICO case underpins the OAG's commitment to safeguarding tenants and addressing the affordable housing crisis in the nation's capital. If proven, the lawsuit could set a precedent for using the RICO Act to combat similar fraudulent housing schemes, providing a powerful new tool for officials in the ongoing fight for tenant rights and housing fairness. The treble damages and civil penalties sought after in the lawsuit could also serve as a stark warning to would-be slumlords in the District and beyond.
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