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Third party to manage, assess Casa Ruby after DC Attorney General files restraining order

The judge agreed to grant DC Attorney General Karl Racine's motion to force Casa Ruby, a local nonprofit, to freeze all its financial accounts.
Credit: AP
FILE - District of Columbia Attorney General Karl Racine attends a news conference near the White House in Washington, Feb. 26, 2018. On Monday, May 23, 2022, the District of Columbia sued Meta chief Mark Zuckerberg, seeking to hold him personally liable for the Cambridge Analytica scandal, a privacy breach of millions of Facebook users’ personal data that became a major corporate and political scandal. Racine filed the civil lawsuit against Zuckerberg in D.C. Superior Court. (AP Photo/Andrew Harnik, File)

WASHINGTON — A D.C. judge Thursday ordered nonprofit Casa Ruby to freeze all of its financial accounts and ordered a third party to instead take on the management and assessment of its financial condition and viability.

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.

Judge Danya Dayson ordered the defendants to remove Corado's signature power along with all other access to her accounts and suspended her from all positions, including membership on the Board of Directors at Casa Ruby.

Dayson's ruling was in response to Attorney General Karl Racine's Office filing an Aug. 1 motion to force Casa Ruby to freeze all its financial accounts.

Corado also requested additional time to obtain counsel.

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

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

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Executive Director Corado has allegedly withdrawn tens of thousands of dollars from Casa Ruby's M&T Bank accounts.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. 

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