DC Accuses Landlord of Running ‘Criminal Enterprise’

Washington, D.C.’s attorney general is trying to force a prolific Ward 7 and 8 landlord out of the rental business, accusing him of orchestrating a decade-long fraud that left hundreds of apartments in disrepair.

On Thursday, Attorney General Brian Schwalb filed a sweeping civil complaint in D.C. Superior Court against Ali “Sam” Razjooyan and associates Eimon and Houri Razjooyan, alleging they operated their multifamily holdings as a racketeering enterprise, Bisnow reported. The lawsuit seeks to bar the trio from doing business in the District and secure restitution and penalties.

At the center of the case is a 70-building portfolio totaling more than 600 units. Prosecutors allege the Razjooyans acquired distressed but livable properties, borrowed against promised renovations and then diverted loan proceeds to fund additional purchases instead of stabilizing existing buildings.

The complaint describes a cycle in which properties were recapitalized based on inflated or misleading representations about their condition, while ownership was layered through a maze of LLCs. Named lenders alleged to be victims include Red Oak Capital Holdings and New Day Commercial Capital.

Meanwhile, the housing stock deteriorated. The filing cites more than 4,000 property maintenance and housing code violations across the portfolio, ranging from persistent pest infestations to heat outages during winter and a fire allegedly tied to faulty wiring from unpermitted work. Only about one-fifth of the violations have been corrected, the District claims.

The city also alleges Razjooyan improperly collected more than $16 million in housing subsidy payments and forced the government to spend hundreds of thousands on inspecting and stabilizing properties.

At least six buildings totaling 251 units remain under Razjooyan’s control, including several along Langston Place SE and B Street SE. Many other properties have been lost through bankruptcy, receivership or foreclosure.

Razjooyan denied wrongdoing in a statement to Bisnow, saying the allegations are unproven and criticizing what he characterized as enforcement by press release. He said he intends to fight the claims in court.