D.C.鈥檚 attorney general alleges that an organization for LGBTQ+ youth has failed in its mission, and that its founder has misused money and probably fled the country.
, Karl Racine seeks to freeze all bank accounts and PayPal accounts for Casa Ruby, 鈥渢o prevent the ongoing misuse of Casa Ruby鈥檚 charitable funds鈥� by founder and former executive director Ruby Corado.
Racine alleges a pattern of mismanagement, poor oversight of programs and finances, and an improper use of District grants and charitable donations.
The organization 鈥� which was founded in 2012 — had provided transitional housing to LGBTQ+ youth in the District, and according to Racine鈥檚 motion, it had received more than $9.6 million in grants from District agencies in the last five years.
But per the motion, its eight-member board of directors has not applied proper oversight and control. The board never met from 2012 until 2020, Racine alleges, and Corado 鈥渁cted without any board oversight.鈥�
鈥淭hus, for more than a decade, the Board ceded full operational and financial control of the organization to a single officer and utterly failed to fulfill its duty of appropriate oversight,鈥� the filing said.
Three board members resigned from September 2021 to April 2022, and remaining board members “are inactive,” the filing said.
Recently, that Corado鈥檚 earnings had grown from just under $32,000 in 2013 to $260,000 in 2020.
The attorney general鈥檚 office believes that Corado, a native of El Salvador, has probably left the country.
鈥淭he District is still investigating the full extent of the misuse here, but knows that significant nonprofit funds have been used for Corado to travel to, live in, and eat in El Salvador, as well as to pay charges on a credit card she controlled that were never reviewed or approved by the organization鈥檚 Board,鈥� the filing alleges.
And since March, Casa Ruby has not produced any required documentation for continuing to receive grant money. As such, all programs have been discontinued and the shelters have closed. Corado resigned as executive director in September, one week after the District鈥檚 Department of Human Services said it would not renew Casa Ruby’s $850,000 grant.
Corado’s successor, Alexis Blackmon, told The Post that she never had access to Casa Ruby鈥檚 bank accounts; she resigned in February.
Employees have not been paid since May, and The Post reported there are several unpaid vendors and landlords.
Racine also alleges that Casa Ruby鈥檚 closing has 鈥渓eft substantial amounts of confidential and personal information potentially abandoned or accessible by persons unknown 鈥� information such as therapy records, reports of domestic violence and records of treatment sought.鈥�
In addition to freezing Casa Ruby鈥檚 assents, the attorney general鈥檚 office wants to remove Corado鈥檚 access to all of the organization’s accounts, and remove her from 鈥渁ny position 鈥� at Casa Ruby.鈥�
Corado told 草莓传媒’s news partner NBC Washington and Telemundo 44 she has never taken money that was not authorized to do work in the community.
鈥淎ny money that was withdrawn was for work that was authorized, work that is still being done in the community today, and that was authorized by the board, this team of people, because I never did this work alone,鈥� Corado said.
Corado also told 草莓传媒4 she has receipts for the money she spent, and she says the District owes her center almost $600,000.
