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DC Attorney General files restraining order against Casa Ruby after executive director allegedly fled country with nonprofit funds

Three of Casa Ruby's landlords have filed actions against the nonprofit, claiming they are owed more than $1 million in back rent.

WASHINGTON — The office of DC Attorney General Karl Racine has filed a motion that would force Casa Ruby, a local nonprofit, to freeze all its financial accounts. 

AG Racine claims Executive Director Ruby Corado has fled the country with tens of thousands of dollars of nonprofit funds and has failed to pay employees and vendors. 

“Their Executive Director appears to have fled the country, withdrawn at least tens of thousands of dollars of nonprofit funds, and has failed to pay employees and vendors money they are rightfully owed," Racine said. "Upon hearing of the suspicious circumstances surrounding its collapse, our office immediately began investigating and is using our broad authority over District nonprofits to safeguard the organization’s assets and hold its leadership accountable.”

The AG says the nonprofit's operations suggest a "clear pattern" of gross mismanagement and poor oversight.

Casa Ruby is a D.C. nonprofit that reportedly aims to provide transitional housing and related support to LGBTQ+ youth through charitable donations from the public and grants from the D.C. government. 

Since 2016, the nonprofit has amassed more than $9.6 million in District grants which were supposed to be used to help the District Latino and LGBTQ+ youth communities.

Executive Director Corado has allegedly withdrawn tens of thousands of dollars from Casa Ruby's  M&T Bank accounts. She is accused of using more than $60,000 in funds to pay for personal credit card bills, in addition to other funds she allegedly used to pay for meals and transportation expenses to and in El Salvador. 

According to court documents, Corado told the District Department of Human Services that the nonprofit's board has authorized the use of $500,000 to establish youth housing in El Salvador. However, there doesn't appear to be any board minutes or other documentation that this is true.

Corado is also accused of failing to pay employees and vendors. Three of Casa Ruby's landlords have filed actions against the nonprofit, claiming they are owed more than $1 million in back rent.

Employees have reportedly also not been paid, with one employee saying they haven't received payment since May 2022. 

D.C. officials are trying to figure out where exactly Corado is but according to court documents, social media posts indicate she is still in El Salvador. 

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