The leader of a Washington LGBT charity organization disputed claims of abusing government funding. This happened after the state’s attorney general filed an order this week to lock the organization’s bank accounts.
On Monday, Attorney General Karl Racine filed an injunction against Casa Ruby, one of the most notable non-profit institutions in the district that provides temporary lodging for LGBT adolescents.
The ruling attempts to lock the organization’s bank accounts so the foundation’s founder, Ruby Corado, cannot withdraw or move cash until a higher court judge appoints a new receiver.
NEW: Today, my office is taking action to address Casa Ruby’s failures in their critical mission to help LGBTQ+ youth.
Their operations suggest:
➡️clear patterns of mismanagement
➡️poor oversight of programs & finances
➡️improper use of District grants & charitable donations.
— AG Karl A. Racine (@AGKarlRacine) August 1, 2022
Access to Funds
In the fall, Corado, a natural male who identifies as a trans woman, resigned as executive director of Casa Ruby.
As stated in the lawsuit, Corado is the only individual who may have access to the foundation’s bank information and financial assets.
In this capacity, Corado reportedly misappropriated funds allotted from government-issued funds and outside contributions for personal gain, according to court documents.
Corado rendered the group unable to function, unable to afford rent on the temporary home it provides for LGBT children, and incapable of paying its staff and vendors.
In a release, Attorney General Karl Racine asserted Casa Ruby misappropriated several hundred thousand dollars in district funding and charitable gifts from their original purpose.
This allegedly happened rather than completing the critical objective of providing temporary housing and assistance to LGBTQ+ adolescents.
Their executive director apparently departed the country and withdrew tens of thousands of dollars in nonprofit funding, neglecting to pay staff and vendors what they are owed.
DC AG launches investigation into Casa Ruby founder, says she fled country with donations https://t.co/wET0KpdpCu
— RillaPerry 🇺🇸 (@jimmyperry0621) August 3, 2022
According to the complaint, despite declaring his departure, Corado retained control of Casa Ruby’s bank accounts.
He continued to “make withdrawals, sign checks, and manage the transfer of money” after the organization suspended operations in July.
According to the petition, since 2021, Corado utilized this access to withdraw over $60,000 to pay private credit card bills and for dining and transit when traveling in El Salvador.
These transactions were never authorized by the Casa Ruby board.
Playing the Discrimination Card
On July 19, Corado reportedly moved at least $604 from the foundation’s PayPal account to its bank account, which only Casa Ruby’s creator could use. The location of Corado is unclear, as stated by the attorney general.
In the lawsuit, Casa Ruby collected upwards of $9.6 million in state money over the past five years. Yet, its executive board “never convened” and failed to disclose any activity between 2012 and 2020.
According to NBC Washington, Corado subsequently denied any misconduct.
The group’s past executive director claimed the county targeted the organization for censuring Mayor Muriel Bowser and filed a discrimination lawsuit against the D.C. Department of Human Services.
“No, I did not accept any cash. They participated in financial constriction to the extent the D.C. authorities have not given more than $500,000 to Casa Ruby as of today,” according to Corado’s statement to Telemundo.
“They could not tolerate a trans-Latina having a voice in the nation’s capital and earning a living wage.”