- Attorney General Schwalb files first civil RICO suit against Razjooyan group for widespread real estate fraud.
- The lawsuit aims to shut down the Razjooyan-controlled slumlord enterprise and restrict future ownership of residential properties in DC.
- The scheme allegedly worsened DC’s affordable housing crisis by making over 600 units nearly uninhabitable and defrauding subsidy programs of $16M.
- District agencies and tenant groups support the action, citing severe property neglect and code violations across dozens of buildings.
Widespread Scheme Uncovered
DC’s Office of the Attorney General has launched a major legal action against the Razjooyan real estate group. Ali “Sam” Razjooyan and his family lead the operation. Prosecutors say they built a slumlord empire spanning more than 70 mostly rent-controlled buildings. Most of the properties sit in Wards 7 and 8.
The civil RICO lawsuit claims the group secured inflated loans by promising repairs they never made. Instead, they neglected maintenance and collected millions in government housing subsidies. Officials say the scheme left hundreds of tenants in unsafe conditions. They also argue it deepened the city’s affordable housing shortage.
Details of the Slumlord Lawsuit
The lawsuit outlines what prosecutors describe as a years-long pattern of fraud. Investigators identified more than 4,000 housing code violations across the properties. These violations include gas leaks, mold, structural damage, and pest infestations. Authorities say the group used shell companies and falsified documents to secure loans and subsidies. They then redirected funds for personal use and new property acquisitions.
Tenants lived in unsafe units while lenders relied on misleading financial statements. Meanwhile, the District paid more than $16M in rent subsidies for substandard properties. The lawsuit seeks financial damages and restitution for affected tenants. It also aims to bar the Razjooyans from owning or managing rental housing in DC. The case adds to a growing wave of landlord-focused litigation in the region, as courts continue to shape how missed rent, property neglect, and tenant protections play out after the pandemic.
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Broader Impact on DC Housing
The slumlord lawsuit highlights systemic risks to DC’s affordable housing inventory. By allowing properties to fall into disrepair, the Razjooyan group reduced the pool of habitable, rent-controlled units and strained local housing programs. Tenant advocates and city officials have backed the action, with the Department of Buildings contributing to the investigation through thousands of inspections.
The case marks an unprecedented RICO application to a real estate fraud operation in the region, projecting significant repercussions for property oversight. OAG underscores its commitment to pursue legal remedies against landlords who undermine affordable housing and endanger residents.
What’s Next
If the slumlord lawsuit succeeds, the Razjooyan group could face treble damages and civil penalties, alongside a permanent ban from the DC rental market. District leaders hope the action will lead to rehabilitation of the affected properties and serve as a deterrent for similar schemes. Ongoing investigations and enforcement actions remain underway to protect tenants and public resources across the city.
