Overview
- Attorney General Brian Schwalb filed the civil case in D.C. Superior Court against Ali “Sam” Razjooyan, Eimon “Ray” Razjooyan and Houri Razjooyan.
- Prosecutors allege a Ponzi‑like model that used false renovation claims and documents to secure loans, diverted funds, and allowed buildings to deteriorate.
- The complaint cites more than $16 million in allegedly fraudulent housing‑subsidy payments and names lenders Red Oak Capital Holdings and New Day Commercial Capital as victims.
- Officials say the defendants amassed about 70 buildings with more than 600 units, largely in Wards 7 and 8, and accrued over 4,000 code violations tied to hazardous conditions.
- The suit seeks to bar the defendants from doing business in the District, recover restitution, damages and penalties, and obtain tenant‑protective injunctions as the defendants deny the claims.