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Schwalb Targets Alleged Slumlord Network in First-of-Its-Kind Racketeering Lawsuit

February 12, 2026

The District of Columbia has filed a major civil racketeering lawsuit against the Razjooyan family, accusing them of running an illegal real estate operation spanning over a decade. The family allegedly controlled more than 70 apartment buildings through a network of shell companies, obtaining fraudulent loans and over $16 million in housing subsidies while subjecting hundreds of tenants to dangerous living conditions including mold, gas leaks, and electrical hazards. Prosecutors claim the family secured excessive loans by promising renovations that never occurred, instead using funds to buy more properties and enrich themselves.

Who is affected

  • Hundreds of tenants living in over 600 rental units across more than 70 apartment buildings, primarily in Wards 7 and 8
  • The Razjooyan family members: Ali "Sam" Razjooyan, Eimon "Ray" Razjooyan, and Houri Razjooyan (defendants)
  • Lenders who provided loans to the enterprise
  • D.C. housing programs that provided over $16 million in subsidies
  • Tenants at 4559 Benning Road SE who were evacuated and displaced to emergency housing
  • Members of the Minnesota Commons Tenant Association

What action is being taken

  • The District of Columbia is filing a 112-page civil racketeering lawsuit in D.C. Superior Court
  • The lawsuit is seeking to dismantle the Razjooyan real estate enterprise
  • The city is pursuing charges under federal RICO, the District's Consumer Protection Procedures Act, and the District's False Claims Act
  • The Attorney General is attacking the foundation of the operation rather than addressing buildings individually

Why it matters

  • This case matters because it addresses D.C.'s serious housing affordability problem by targeting landlords who decrease available housing supply and force tenants into hazardous living conditions. The alleged fraud involves tens of millions of dollars siphoned from lenders and city housing programs while over 4,000 housing code violations endangered tenant safety. By pursuing a comprehensive approach to dismantle the entire enterprise rather than addressing individual properties, the lawsuit sets a precedent for holding slumlords accountable and protecting affordable housing resources that are meant to serve vulnerable residents.

What's next

  • No explicit next steps stated in the article

Read full article from source: The Washington Informer