Home Nonprofit organization Casa Ruby’s bank accounts frozen as Karl Racine investigates nonprofit

Casa Ruby’s bank accounts frozen as Karl Racine investigates nonprofit



A DC Superior Court judge has granted DC Attorney General Karl A. Racine’s request to temporarily freeze Casa Ruby’s bank accounts, according to court documents filed Wednesday. The decision follows a Washington Post report that raised questions about possible financial mismanagement at the LGBTQ nonprofit.

Racine’s office had asked the court to issue a temporary restraining order to stop Casa Ruby founder Ruby Corado from making any further takedowns.

Judge Danya A. Dayson held a remote hearing on Wednesday to consider the emergency motion. Corado, who told a Telemundo reporter last week that she was in El Salvador, did not show up.

DC Attorney General seeks to block access to Casa Ruby’s bank accounts

Dayson granted the emergency request and set another hearing for next week to consider the attorney general’s request to appoint a court-supervised official to stabilize and reform the nonprofit’s management. Dayson also authorized the attorney general’s office to subpoena Corado via email.

Last month’s Post report was based on interviews with former employees, court records, tax filings and thousands of emails sent and received by DC Department of Human Services officials that were obtained through a request for public records.

Casa Ruby shuts down rest of its operations and workers go unpaid

Since 2016, Casa Ruby has received $9.6 million in grants from city agencies to meet the needs of the district’s Latino and LGBTQ+ youth communities. The nonprofit reported more than $4.1 million in grants and other income on its latest federal tax returns, which showed Corado earned $260,000. But employees say they left without pay, and at least four landlords told city agencies the nonprofit did not pay rent on properties it rented for its shelter programs. low-barrier and transitional housing.

Casa Ruby closed most of its operations in July.

Corado announced on Facebook last October that she had resigned. But the attorney general found that Corado is the only current signer on Casa Ruby’s bank accounts and has retained access to its PayPal account, which processes donations.

Bowser on Casa Ruby’s closure: ‘We need to figure out what happened’

Throughout 2021, Racine’s office said, Corado used more than $60,000 of Casa Ruby funds to pay bills from a charge card she controlled, and she used money from the non-profit organization to pay for meals and transportation to and within El Salvador. She withdrew at least $604 as recently as July 19, the bureau found.

Corado did not respond to phone calls or emails from The Post.