DC goes after evil landlord with a law reserved for gang members and mob bosses

D.C. Attorney General Brian Schwalb is taking an unprecedented step to dismantle the local real estate business of notorious landlord Ali “Sam” Razjooyan. He is using the powerful civil Racketeer Influenced and Corrupt Organizations Act, better known as RICO, which is famously deployed against high-level figures like mob bosses and gang leaders. For the first time ever, the District is using it to go after a landlord they accuse of running a vast criminal enterprise.

According to the Washington Post, Razjooyan has faced public scrutiny for years over how he treats low-income tenants, and the Attorney General’s office has already sued him twice. He’s racked up a truly unbelievable number of violations, tallying more than 4,000 building code infractions across his properties. The new civil lawsuit, filed on a Thursday, claims that Razjooyan, along with his mother and brother, operated an “illegal real estate empire.” 

This scheme allegedly put hundreds of tenants in danger, worsened the city’s affordable housing crisis, and defrauded Washington D.C.’s housing assistance program, all while the family raked in millions of dollars. The goal here isn’t just to fine them; the suit aims to permanently kick the Razjooyans out of the D.C. rental housing market and is seeking millions in damages and restitution for the harmed tenants.

It takes a special kind of evil to prey on those dependent on you

Attorney General Schwalb explained that this systemic approach is necessary as they are “targeting the very foundation of the Razjooyans’ vast operation: the web of fraud and deception that is at the core of their business model,” rather than going after individual properties. The complaint alleges that over a decade, the Razjooyans acquired and worked on 70 buildings, collecting over $16 million from D.C.’s housing voucher program. 

Razjooyan would allegedly identify a distressed property, then promise lenders he could turn it into a “cash cow” by filling it with tenants whose rent was guaranteed by D.C. subsidies. This allowed him to secure loans that were greater than the property’s actual worth. Unfortunately for the tenants, Razjooyan allegedly hired companies he controlled to perform shoddy, illegal construction, and most of the money from the loans went into family bank accounts.

Ernest Wilkerson, who serves as the tenant association president at Minnesota Commons in Northeast Washington, recalled that when he first moved in, the complex was nice. After Razjooyan bought the property, however, maintenance ceased, trash piled up, and shoddy construction turned two- and three-bedroom units into cramped one-bedroom apartments. It created deplorable living conditions when people can’t afford their own houses yet.

The conditions were not just squalid; they were potentially deadly. The lawsuit recounts a fire in one Northeast Washington building, likely due to faulty wiring. The suit also describes a gas leak, lack of heating in winter, and mouse infestations. That being said, the lawsuit also noted that rising interest rates made financing tough, and at least 21 of their properties are in bankruptcy. Another 13 are managed by court-ordered third parties.