D.C.'s attorney general has filed new accusations against the founder of Casa Ruby, Ruby Corado, saying she misappropriated hundreds of thousands of dollars intended for the nonprofit that provided housing, food and social services to the LGBTQ community.
The D.C. government cut off funding to the organization last year, and the Office of the Attorney General announced in August it was investigating how Casa Ruby was managed, its oversight of programs and finances, and alleged improper use of District grants and charitable donations.
On Monday, Attorney General Karl Racine filed an amended complaint, which states that Corado funneled more than $400,000 from the nonprofit to her personal accounts.
"Between April 2021 and sept 2021 we know that Ms. Corado transferred over $400,000 from one of the accounts that was supposed to be used, and another that was also supposed to be used for the nonprofit purposes to accounts that she has in El Salvador," said Adam Gitlin, chief of the Antitrust and Nonprofit Enforcement Section for the attorney's office.
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Corado, who is currently living in El Salvador, again denied any wrongdoing when she spoke to News4 about the allegations on Tuesday.
She said the $400,000 was "in a program."
When asked where that program was, Corado said, "That information is going to be disclosed in court."
The attorney general's office said it has uncovered other problems with the nonprofit.
"Evidence we've uncovered of Casa Ruby's unpaid workers, workers who have gone for months without being paid," Gitlin said.
Corado said that claim is true, but not her fault.
"Because the government did not reimburse almost a million dollars," she said.
Corado opened the doors of Casa Ruby 10 years ago as a shelter for LGBTQ youth. The nonprofit has received more than $9 million in grants from the D.C. government since 2016.
“Their operations suggest: clear patterns of mismanagement, poor oversight of programs & finances, improper use of District grants & charitable donations," Racine tweeted in August. He added that Corado appeared to have fled the country and withdrawn tens of thousands of dollars in nonprofit funds after failing to pay employees and vendors.
Corado insists she’s being targeted by the D.C. government for her criticism of the Bowser administration and a discrimination complaint she filed against the D.C. Department of Human Services.
"For the people who wanted me to shut up, you know, I was a threat - particularly, as we were going into an election year," she said.
A judge has appointed another nonprofit to oversee Casa Ruby while the court case plays out.
It's unknown if taxpayers and donors could recover any money if the court upholds the allegations against Corado.
"It does appear that a lot of the assets of Case Ruby have been taken out of the United States," Gitlin said.
