District of Columbia v. Razjooyan

CourtDistrict Court, District of Columbia
DecidedJuly 16, 2026
DocketCivil Action No. 2026-1210
StatusPublished

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Bluebook
District of Columbia v. Razjooyan, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

DISTRICT OF COLUMBIA,

Plaintiff,

v. Case No. 26-cv-1210 (CRC)

ALI RAZJOOYAN, et al.,

Defendants.

MEMORANDUM OPINION

This case concerns an alleged large-scale illegal enterprise that has ensnared dozens of

multi-family residential properties and victimized scores of tenants in the District of Columbia.

Specifically, Plaintiff District of Columbia (the “District”) claims that brothers Ali (“Sam”) and

Eimon (“Ray”) Razjooyan and their mother Houri Razjooyan (collectively, “Defendants”) have

operated a “Ponzi-like scheme” in which they purchased dilapidated residential properties with

promises to renovate them, obtained millions of dollars in housing subsidies, generated fake

rental income statements to acquire new properties, and steadily grew their real estate empire

while their residents endured deplorable living conditions. The District contends that through

their years-long scheme, Defendants violated the civil provisions of the federal Racketeer

Influenced and Corrupt Organization (“RICO”) Act, the D.C. Consumer Protection Procedures

Act (“DCCPPA”), and the D.C. False Claims Act (“DCFCA”).

The allegations in the 87-page complaint implicate a broad swath of properties, shell

companies, and financial transactions. Presently before the Court, however, is the District’s

motion for a preliminary injunction on more narrow grounds. According to the District, five

properties currently controlled by Sam and Houri Razjooyan have racked up almost 200

unabated violations of the D.C. Housing and Property Maintenance Code, which it claims are per se violations of the DCCPPA. In light of these violations—which have caused animal

infestations, routine flooding, and the loss of basic utilities—the District asks the Court to order

both remedial and prophylactic relief. First, the District seeks an order requiring Defendants to

abate the illegal and unsafe housing conditions identified in the notices of infraction issued by

the D.C. Department of Buildings. Second, the District asks the Court to preemptively bar

Defendants from executing any new leases or engaging in certain real estate transactions without

prior approval while this litigation proceeds.

For the reasons described below, the Court concludes that the District is entitled to

remedial relief, but it has not demonstrated that prophylactic relief is warranted at this time.

Accordingly, the Court will grant the District’s motion in part and deny it in part.

I. Background

According to the District, Defendants are operating a “criminal enterprise” that has

controlled numerous multi-family residential properties in the District of Columbia since 2015.

See Compl. ¶¶ 1, 11. Sam Razjooyan is the purported “head” of the illegal enterprise, id. ¶ 20,

Ray Razjooyan is Sam’s brother and “lieutenant,” id. ¶ 21, and their mother Houri Razjooyan

“participates in and directs aspects of” the enterprise, id. ¶ 22. Together, Defendants allegedly

used the properties to perpetrate a “Ponzi-like scheme.” Id. ¶ 2.

The alleged scheme followed “a broadly consistent pattern.” Id. ¶ 68. First, Defendants

found a “distressed” multi-family residential property with rent-controlled apartments. See id.

¶ 69. Second, Defendants sought loans from various lenders, promising to use the loan proceeds

to redevelop the property and secure leases from tenants with D.C.-funded housing subsidies.

See id. Because this plan would (in theory) yield a reliable stream of recurring revenue, the

lenders provided loans exceeding the purchase price of the property. See id. Third, Defendants

2 used most of the loan proceeds to enrich themselves and fund subsequent property acquisitions.

See id. ¶ 70. Only a small portion of the loans were used to “improve” the property, but even

then, those funds were used for “illegal, unsafe, and unpermitted construction” projects that

concealed deeper structural problems. Id. Fourth, Defendants falsely reported to lenders that the

capital improvements were complete, the property was fully occupied, and the investment was

generating substantial income. See id. ¶ 7. Meanwhile, the properties collectively amassed over

4,000 housing code violations and millions of dollars in unpaid fines. See id. ¶ 12. Fifth,

Defendants repeatedly refinanced the properties. See id. ¶ 71. They gave lenders fake

documents showing inflated numbers of tenants and housing subsidy payments, which artificially

increased the value of the properties. See id. This refinancing allowed Defendants to “acquire

more properties and stave off threats of foreclosure for existing properties.” Id.

The District alleges that through this scheme, Defendants enriched themselves by

(1) hiring companies under their control to perform “dubious” work on the properties, id. ¶ 7;

(2) skimming money from various bank accounts used in the scheme, id. ¶ 72; and (3) collecting

subsidy payments from D.C.-funded or D.C.-administered housing programs, see id. ¶¶ 73–74.

The District estimates that Defendants have obtained more than $16 million from these

programs. Id. ¶ 9.

At this stage, the Court need not assess the plausibility of these allegations or definitively

rule on the merits of the District’s claims. Instead, the pending motion for a preliminary

injunction turns on specific D.C. Housing and Property Maintenance Code violations at five

properties purportedly under Defendants’ control.1 In support of its motion, the District has

1 The District’s motion for a preliminary injunction cited D.C. Housing and Property Maintenance Code violations at six properties. See Pl.’s Mot. for Prelim. Inj. at 3. The District later withdrew its request for relief regarding the property at 2844 Langston Place SE, as that

3 submitted more than 200 exhibits and presented testimony from six witnesses at a hearing in

D.C. Superior Court. 2 See Pl.’s Mot. for Prelim. Inj. (“Pl.’s Mot.”), Ex. List (ECF No. 9-2) at 1–

2. The following facts are derived solely from the exhibits and hearing testimony.

A. Conditions at Properties Under Defendants’ Control

As noted above, Defendants have owned or controlled more than 40 multi-family

residential properties in the District of Columbia. See Pl.’s Mot., Ex. 1, Declaration of Keith

Parsons (“Parsons Decl.”) ¶ 9. These properties have been cited for over 4,300 violations of the

D.C. Housing and Property Maintenance Code; only about 20 percent of those violations have

been abated. Id. ¶¶ 9–10; Mot. Hr’g Tr. (ECF No. 9-4) 25:19–21, 26:5. For the five properties

currently under Defendants’ control, the D.C. Department of Buildings has identified 198

violations of the D.C. Housing and Property Maintenance Code that have not been abated. See

Parsons Decl. ¶¶ 14–16, 18–20. The Court addresses each property in turn.

1. 1035 48th Street NE

1035 48th Street NE (“1035 48th Street”) is a twelve-unit multi-family residential

property. See Pl.’s Mot. at 7. The property was acquired by 1035 48th St NE DE LLC (the

“1035 48th Street LLC”) in December 2022. See id., Ex. 8 at 2; id., Ex. 9 at 11. According to a

foreign registration form on file with the D.C. Department of Licensing and Consumer

Protection, the 1035 48th Street LLC engaged in “real estate and rental and leasing management

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