D.C. AG wants to freeze Casa Ruby's bank account
D.C.’s attorney general wants to freeze the financial accounts of a non-profit that once provided housing to LGBTQ+ youth, after a bombshell Washington Post report detailed financial mismanagement by the organization.
Why it matters: The attorney general’s office is responsible for policing non-profit organizations to ensure they are using funds consistent with their mission.
What’s happening: The Washington Post report last month found that those once served by the non-profit, Casa Ruby, were forced to vacate their housing, and employees were left unpaid. Three landlords of Casa Ruby buildings say executive director Ruby Corado hasn't paid rent.
Corado, who founded Casa Ruby in 2012, withdrew tens of thousands of dollars from the non-profit's account through 2021, using ATM and cash withdrawals, the AG complaint says. It also alleges that she used more than $60,000 to pay bills for a charge card as well as to pay for meals and transportation to and in El Salvador — where Corado says she is opening a new Casa Ruby location.
- Casa Ruby has also received several grants from the D.C. government, totaling more than $9.6 million since 2016.
Flashback: Corado was recognized in 2019 as a "Washingtonian of the Year," telling Washingtonian magazine: “I don’t know any place in the world where a homeless, HIV-positive, undocumented trans woman of color can have a dream of serving people in her community and be able to live that dream.”
- The magazine has since amended the article, noting these allegations.
State of play: The temporary restraining order filed Monday by Attorney General Karl Racine’s office seeks to stop Corado from withdrawing more money from the non-profit’s accounts.
- The motion also wants a court-appointed official to stabilize and reform Casa Ruby as well as oversee the organization’s past financial dealings.
- Racine also wants to recover any misspent funds.
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