DC sues landlords under RICO over alleged mistreatment of low-income tenants

Washington, D.C. Attorney General Brian Schwalb filed a lawsuit using the Racketeer Influenced and Corrupt Organizations Act against members of the Razjooyan family, alleging a network of shell companies and deceptive practices tied to roughly 70 rent-controlled properties; the suit seeks restitution for affected tenants and to bar the defendants from doing business in the District.

Washington, D.C. Attorney General Brian Schwalb filed a civil lawsuit that uses the Racketeer Influenced and Corrupt Organizations Act (RICO) against Ali "Sam" Razjooyan, his brother Eimon "Ray" Razjooyan, and their mother Houri Razjooyan. The complaint alleges the defendants used a complex network of shell LLCs, unlicensed property management and construction companies, and straw purchasers to conceal ownership and to seek financing and housing subsidies. The office says many of the properties involved are rent-controlled and that tenants experienced unsuitable living conditions. The suit follows earlier 2024 actions by the attorney general’s office and is presented as a broader effort to address practices that officials say affect the city’s affordable housing supply. Key points: - The attorney general filed a RICO-based civil lawsuit, which officials said is the first use of that statute in a D.C. housing case. - The named defendants are members of the Razjooyan family, who are alleged to control about 70 primarily rent-controlled properties. - The complaint alleges a coordinated scheme using shell companies and deceptive practices to obtain financing and to participate in housing subsidy programs. - The lawsuit seeks restitution for tenants and asks a court to enjoin the defendants from doing business in the District. - The defendants have disputed the allegations and said they will address the claims in court. Summary: The attorney general’s office says the RICO filing is intended to go beyond isolated property issues and target the alleged organizational structure behind the conduct, which officials link to strains on the city’s affordable housing stock. The defendants have denied the allegations and said the matter belongs in court for resolution. Undetermined at this time.