D.C. Attorney General Sues Landlord Under RICO Act

Washington, D.C. – On February 12, 2026, D.C. Attorney General Brian L. Schwalb announced a sweeping civil lawsuit against Ali “Sam” Razjooyan, his brother Eimon “Ray” Razjooyan, and their mother, Houri Razjooyan, alleging they operated a vast illegal real estate empire. The lawsuit, filed under the Racketeer Influenced and Corrupt Organizations (RICO) Act, aims to dismantle the Razjooyans’ alleged scheme and address the severe housing crisis in Wards 7 and 8.

RICO Charges and Allegations

This marks the first time a civil lawsuit under the RICO Act has been used against a landlord in the District of Columbia. The Attorney General’s Office alleges the Razjooyans engaged in a decade-long scheme to defraud lenders and tenants, acquiring over 70 rent-controlled buildings – 90% of them in Wards 7 and 8.

The lawsuit claims the Razjooyans secured loans by submitting false financial documents and promising renovations that were never completed. Instead of improving the properties, the funds were allegedly used to enrich themselves, pay off existing debts, and acquire additional buildings, functioning as a “Ponzi-like scheme.”

Horrific Living Conditions and Tenant Exploitation

As a result of the alleged scheme, tenants were forced to live in deplorable conditions, including rodent and insect infestations, gas leaks, electrical hazards, mold, flooding, and mountains of trash. The Office of the Attorney General states that some properties have been condemned due to their unsafe conditions.

The Razjooyans are also accused of defrauding the District by falsely claiming the properties were safe and habitable to receive housing subsidies, totaling over $16 million to date.

Impact on Affordable Housing

The lawsuit seeks to permanently shut down the Razjooyans’ real estate empire and recover funds for the District and affected tenants. The condemned properties remain unrepaired due to difficulties in finding buyers willing to invest in such dilapidated buildings, exacerbating the affordable housing shortage.

Legal Actions and Penalties

In addition to the RICO Act violations, the lawsuit alleges violations of the Consumer Protection Procedures Act and the District’s False Claims Act. Under RICO and the False Claims Act, the Razjooyans could be held liable for three times the amount of their fraud, plus civil penalties payable to the District. The Attorney General noted that the District lacks the jurisdiction to criminally charge the adults involved, with that responsibility falling to the D.C. Office of the U.S. Attorney.