District of Columbia
Ruby Corado withdrew $400,000 of Casa Ruby funds: D.C. att’y gen’l
Complaint says she transferred money to banks in El Salvador
The Office of the D.C. Attorney General on Monday filed an amended civil complaint in D.C. Superior Court against Casa Ruby and its founder and former executive director Ruby Corado that includes new allegations, including claims that Corado withdrew more than $400,000 of Casa Ruby funds for unauthorized use in El Salvador.
The 25-page amended complaint adds multiple new allegations to the Attorney General office’s original complaint against Casa Ruby filed on July 29. That complaint, among other things, charged the nonprofit LGBTQ community services organization and Corado with violating the D.C. Nonprofit Corporations Act in connection with its financial dealings.
The amended complaint also follows the approval by D.C. Superior Court Judge Danya Dayson of a request in August by the Attorney General’s office to place Casa Ruby under receivership and to appoint the Wanda Alston Foundation as the receiver. The D.C.-based Alston Foundation provides housing services for homeless LGBTQ youth.
On Oct. 28, the Alston Foundation released its Receiver’s Second Interim Report on its findings related to Casa Ruby’s finances. The report points to some of the same unexplained and unauthorized expenditures and transfers of Casa Ruby’s funds by Corado that are included in the AG office’s amended complaint.
The Alston Foundation had been scheduled to release its Receiver’s Third Interim Report also on Monday, Nov. 28. But Alston Foundation Executive Director June Crenshaw told the Washington Blade the foundation requested an extension of that deadline to give it a chance to review the new allegations in the AG office’s amended complaint.
Among other things, the AG office’s amended complaint adds three new defendants to what legal observers say is the equivalent of a lawsuit by the D.C. government against Corado and Casa Ruby. The new defendants named in the complaint are limited liability companies created and controlled by Corado to purportedly perform services in support of Casa Ruby.
They include a new version of Casa Ruby called Casa Ruby LLC doing business as Moxie Health; Pneuma Behavioral Health LLC; and Tigloballogistics LLC doing business as Casa Ruby Pharmacy.
The amended complaint notes that Corado, who claimed the new companies, especially the pharmacy, were part of Casa Ruby’s mission, never received approval to create the companies from the Casa Ruby board of directors, which the AG’s office has said rarely met and failed to provide any oversight of Corado’s actions.
According to the amended complaint, Corado transferred large sums of money from the original Casa Ruby to these companies and at some point, transferred funds from the new companies to her own personal bank account.
Both the earlier complaint filed in July and the amended complaint allege that Corado transferred as much as $500,000 of Casa Ruby’s funds to create what she said was a new Casa Ruby in El Salvador approved by the Casa Ruby board. But the earlier and amended complaints allege that the board never authorized the El Salvador operation.
Between April 2021 and September 2022, the amended complaint says, Corado transferred over $400,000 from two Casa Ruby related accounts “to accounts she held under her birth name in two El Salvador banks.” It says the Casa Ruby board “never authorized any of these transfers.”
In addition to the financial related allegations, the amended complaint charges Casa Ruby and Corado with violating D.C.’s Wage Payment and Collection Law and the D.C. Minimum Wage Revision Act by failing to pay Casa Ruby employees all the wages they earned for their work several months before Casa Ruby closed its operations in July 2022.
“At various times between July 2021 and July 2022, while Corado was freely supplementing her $260,000 salary with additional funds drawn from Casa Ruby’s bank accounts, many of Casa Ruby’s employees were paid only $15.00 per hour, less than the minimum wage in the District of Columbia as of July 1, 2021,” the amended complaint says. “None of these employees received the full wages they earned,” it says.
One of the former employees told the Washington Blade most of the remaining employees during Casa Ruby’s final months before its shutdown were paid late or not paid at all. Under the two labor related laws the amended complaint has charged Casa Ruby and Corado with violating, an employer could be required to pay the employees any lost or missing wages.
But the Receiver’s Second Interim Report filed in October by the Alston Foundation says among other improper financial dealings, Casa Ruby failed to pay the U.S. Internal Revenue Service payroll taxes withheld from its employees. The AG office’s amended complaint says that as of June of this year, Casa Ruby owed the IRS $127,435 in employment taxes, not including interest and penalties.
The receiver’s report points out that under federal law, employers that owe back taxes to the IRS must pay those claims first. “Thus, after all outstanding payroll taxes have been paid off, there is little chance that there will be anything left for any other debts or obligations like past rent or wages,” the report says.
The amended complaint filed by the AG’s office says a copy of the amended complaint was sent to Corado through an email address, which has been the only known way of reaching Corado. Former Casa Ruby employees have said she had been spending most of her time over the past year or longer in El Salvador. The complaint says that as of October, Corado still had not retained an attorney to represent her and was representing herself in a process known as pro se representation.
The Blade couldn’t immediately reach Corado for comment on the amended complaint through the same email address.
During a virtual court hearing in September, Corado denied any improper or illegal financial practices and blamed the D.C. government for Casa Ruby’s collapse, saying city agencies cut off funding for Casa Ruby without a legitimate reason. However, the D.C. Department of Human Services, which provided much of Casa Ruby’s funding through grants, has said the funding was stopped after Casa Ruby failed to submit financial reports required for all grant recipients that account for how the grant money is spent.
District of Columbia
New queer bar Rush beset by troubles; liquor license suspended
Staff claim they haven’t been paid, turn to GoFundMe as holidays approach
The D.C. Alcoholic Beverage and Cannabis Board on Dec. 17 issued an order suspending the liquor license for the recently opened LGBTQ bar and nightclub Rush on grounds that it failed to pay a required annual licensing fee.
Rush held its grand opening on Dec. 5 on the second and third floors of a building at 2001 14 Street, N.W., with its entrance around the corner on U Street next to the existing LGBTQ dance club Bunker.
It describes itself on its website as offering “art-pop aesthetics, high-energy nights” in a space that “celebrates queer culture without holding back.” It includes a large dance floor and a lounge area with sofas and chairs.
Jackson Mosley, Rush’s principal owner, did not immediately respond to a phone message from the Washington Blade seeking his comment on the license suspension.
The ABC Board’s order states, “The basis for this Order is that a review of the Board’s official records by the Alcoholic Beverage and Cannabis Administration (ABCA) has determined that the Respondent’s renewal payment check was returned unpaid and alternative payment was not submitted.”
The three-page order adds, “Notwithstanding ABCA’s efforts to notify the Respondent of the renewal payment check return, the Respondent failed to pay the license fee for the period of 2025 to 2026 for its Retailer’s Class CT license. Therefore, the Respondent’s license has been SUSPENDED until the Respondent pays the license fees and the $50.00 per day fine imposed by the Board for late payment.”
ABCA spokesperson Mary McNamara told the Blade that the check from Rush that was returned without payment was for $12,687, which she said was based on Rush’s decision to pay the license fee for four years. She said that for Rush to get its liquor license reinstated it must now pay $3,819 for a one-year license fee plus a $100 bounced check fee, a $750 late fee, and $230 transfer fee, at a total of $4,919 due.
Under D.C. law, bars, restaurants and other businesses that normally serve alcoholic beverages can remain open without a city liquor license as long as they do not sell or serve alcohol.
But D.C. drag performer John Marsh, who performs under the name Cake Pop and who is among the Rush employees, said Rush did not open on Wednesday, Dec. 17, the day the liquor board order was issued. He said that when it first opened, Rush limited its operating days from Wednesday through Sunday and was not open Mondays and Tuesdays.
Marsh also said none of the Rush employees received what was to be their first monthly salary payment on Dec. 15. He said approximately 20 employees set up a GoFundMe fundraising site to raise money to help sustain them during the holiday period after assuming they will not be paid.
He said he doubted that any of the employees would return to work in the unlikely case that Mosley would attempt to reopen Rush without serving liquor or if he were to pay the licensing fee to allow him to resume serving alcohol without having received their salary payment.
As if all that were not enough, Mosley would be facing yet another less serious problem related to the Rush policy of not accepting cash payments from customers and only accepting credit card payments. A D.C. law that went into effect Jan. 1, 2025, prohibits retail businesses such as restaurants and bars from not accepting cash payments.
A spokesperson for the D.C. Department of Licensing and Consumer Protection, which is in charge of enforcing that law, couldn’t immediately be reached to determine what the penalty is for a violation of the law requiring that type of business to accept cash payments.
The employee GoFundMe site, which includes messages from several of the employees, can be accessed here.
Mosley on Thursday responded to the reports about his business with a statement on the Rush website.
He claims that employees were not paid because of a “tax-related mismatch between federal and District records” and that some performers were later paid. He offers a convoluted explanation as to why payroll wasn’t processed after the tax issue was resolved, claiming the bank issued paper checks.
“After contacting our payroll provider and bank, it was determined that electronic funds had been halted overnight,” according to the statement. “The only parties capable of doing so were the managers of the outside investment syndicate that agreed to handle our stabilization over the course of the initial three months in business.”
Mosley further said he has not left the D.C. area and denounced “rumors” spread by a former employee. He disputes the ABCA assertion that the Rush liquor license was suspended due to a “bounced check.” Mosley ends his post by insisting that Rush will reopen, though he did not provide a reopening date.
District of Columbia
Brian Footer suspends campaign for Ward 1 D.C. Council seat
Race’s third LGBTQ candidate cites family reasons for ‘stepping back’
Gay Advisory Neighborhood Commissioner Brian Footer, who was one of three out LGBTQ candidates running for the open Ward 1 D.C. Council seat in the city’s June 16, 2026, Democratic primary, announced on Dec. 17 he has decided to “suspend” his campaign to focus on his family.
“After deep reflection and honest conversations with my family, I have decided to suspend my campaign for the D.C. Council,” he said in a statement. “This moment in my life requires me to be present with the people I love most and honor the responsibilities I carry both at home and in the community,” he states. “This was not an easy decision, but it is the right one for me and my family at this time.”
Footer, a longtime Ward 1 community activist and LGBTQ rights advocate, announced his candidacy for the Ward 1 Council seat in July, one month before bisexual Ward 1 community activist Aparna Raj announced her candidacy for the Council seat on Aug. 12.
Gay Ward 1 Advisory Neighborhood Commissioner Miguel Trindade Deramo announced his candidacy for the Ward 1 Council seat on Nov. 18, becoming the third out LGBTQ candidate in what appeared to be an unprecedented development for a race for a single D.C. Council seat.
At least three other candidates who are not LGBTQ are running for the Ward 1 Council seat. They include Ward 1 ANC member Rashida Brown, longtime Ward 1 community activist Terry Lynch, and Jackie Reyes-Yanes, the former director of the Mayor’s Office of Community Affairs.
In his statement announcing the suspension of his candidacy, Footer said he would continue to be involved in community affairs and advocate for the issues he discussed during his campaign.
“I want to be clear: I am stepping back from the race, not the work,” he says in his statement. “Public service has always been my calling. I will continue advocating for affordability, for safer streets, for stability for small businesses, and for a government that responds to people with urgency and respect,” he wrote. “And I will continue showing up as a partner in the work of building a stronger Ward 1.”
Footer concluded by thanking and praising his campaign supporters and calling his campaign suspension a “transition,” suggesting he is not likely to resume his candidacy.
His campaign press spokesperson did not immediately respond to a question from the Washington Blade asking if Footer might later resume his campaign or if his latest action was in effect an end to his candidacy.
“To everyone who knocked on doors, hosted conversations, donated, shared encouragement, and believed in this campaign, thank you,” he says in his statement. “I am deeply grateful for every person who helped this campaign take root,” he added. “This isn’t an ending, it’s a transition. And I’m excited for the work ahead, both in Ward 1 and at home with my family.”
Longtime gay D.C. Democratic Party activist Peter Rosenstein said in a statement to the Blade, “I respect Brian Footer’s decision to end his campaign for Council. It is not easy to run a campaign in D.C. and there are many others running in Ward 1.” He added, “While not living in Ward 1, I thank Brian for all he has done and clearly will continue to do for the people in the ward.”
District of Columbia
D.C. students need academic support, diverse connections for economic mobility
Region offers array of resources for families in need of assistance
Education is the blueprint of good economic mobility.
But when students aren’t set up with the proper resources to secure a quality education, it’s often low-income families that suffer the most, For Love of Children (FLOC) Executive Director LaToya Clark said. Children from low-income families on average grow up to earn $25,600 annually, according to Opportunity Insights.
D.C. families need better economic mobility, and experts say that starts with kids getting an education and breaking generational poverty cycles. Students without a high school diploma earn $738 per week on average, while those who graduated high school earn roughly $930 per week, according to the U.S. Bureau of Labor Statistics. Contrarily, those with bachelor’s degrees earn about $1,543 per week.
Students from low-income backgrounds have fewer financial advantages on their paths to securing an education, and hardships faced by public schools make it difficult for them to catch up, Clark said.
From local financial and educational assistance programs to strengthening diversity among educators, here are a few ways researchers and advocates are fighting for better economic mobility in D.C. schools.
Student assistance programs
For many students, falling behind academically is because of circumstances outside of their control, Clark said.
She said teacher shortages, large classrooms and scarce funding can lead to an educational environment not fully equipped to set students on the right path. A one-dimensional education can then hinder future professional opportunities and give students limited economic mobility.
That’s where local organizations like FLOC come in –– to fill in the academic and social gaps often left open by schools.
Clark said FLOC has multiple services that give underserved students a more individualized academic experience. For the Neighborhood Tutoring Program, students are assessed at the grade level at which they’re performing, not what grade they are in. They’re then matched with a volunteer –– ranging from college students to retirees –– who follows a curriculum that matches the student’s performance level.
There’s also the Pathways Forward Program, an afterschool opportunity for D.C. youth in 7th to 12th grades designed to increase high school graduation rates. The program supports those at risk of academic failure to find a successful way forward, and those in 10th to 12th grades to prepare for graduation or transition to postsecondary programs. Both Neighborhood Tutoring and Pathways Forward are free.
“Everything we offer is designed to close achievement gaps, help our students boost their confidence and ensure young people have the skills and support that they need to succeed in schools and beyond,” Clark said.
And that design is working for students. Clark recalled a young girl who was the oldest of six who felt a need to help her mom take care of her siblings. She was falling behind in school until she found FLOC. The girl credited her ability to go to college and find a professional job to FLOC’s individualized and accessible approach to education.
FLOC is a reliable resource for D.C. youth to get academic help, but there are numerous other organizations working to close educational gaps and improve the future economic mobility of students.
Minds Matter D.C. helps underserved students find accessible pathways to prepare for and succeed in college. The organization offers mentoring, SAT prep, access to summer enrichment programs and guidance through the college application and financial aid process.
The work Minds Matter does addresses a disproportionate statistic: While roughly 89% of students from “well-off” families attend college, only 51% of students from low-income families do so, according to a report published by Brookings. Minds Matter reported that 100% of its students attended a four-year college or university.
The D.C. Schools Project, a program of the Center for Social Justice, offers academic help and English-language tutoring for low-income and immigrant families. Each semester, roughly 60 tutors assist about 100 students, their families, and other D.C. immigrants.
D.C. CAP Scholars has a mission to connect youth with financial and academic opportunities that will help them succeed in college. Registration is now open for the organization’s Ward 7 & 8 scholarship, a $12,000 annual scholarship for students who attended high school in those D.C. wards. Those areas encompass communities such as Congress Heights, Deanwood and Anacostia, which are some of the city’s poorest areas.
RISE offers tutoring and college mentoring to underserved populations. Its primary focus is on opportunity academies, including the three in D.C.: Ballou STAY, Luke C. Moore and Garnet-Patterson STAY. These academies are “second chance” schools for students who didn’t complete high school on a traditional timeline.
RISE Executive Director Ricardo Cooper said the organization offers real-time tutors for students in these academies through its Keep Up Tutoring program. RISE also provides summer literacy “bootcamps” and college prep for underserved students.
As a native Washingtonian, Cooper said he wishes opportunities like RISE were available to him as a kid. That’s why it’s so special for him to lead the organization and help D.C. youth rise above the academic and economic barriers he used to face.
“We know that going to college and getting a degree makes you more money,” Cooper said. “Being able to have these programs to support youth in school, to make sure that they feel confident once they graduate high school, to go to college, to feel confident in completing their coursework and just understanding the material is important to raise that poverty line.”
While these programs are crucial to many students’ success, Matthew Shirrell, associate professor of educational leadership at George Washington University, said there are many fundamental solutions to supporting kids that schools should recognize.
Diverse learning opportunities
Shirrell’s research has identified a key link to the positive relationships between teachers and students: diversity.
“Having a more diverse teaching workforce would certainly benefit all students, because it’s like their teachers having access to a library with a whole bunch of different perspectives,” Shirrell said.
He said teachers have a continuously growing list of responsibilities not just academically, but in dealing with social and emotional issues that students bring to school. By having a diverse team of educators in each school, teachers are better equipped to connect with students to turn potential barriers into new pathways.
But achieving this is about more than championing diversity –– it’s a way for students to secure better futures and stay out of the criminal justice system, Shirrell said.
Shirrell pointed to the idea of “exclusionary discipline.” In his research, Shirrell found that Black and LatinX students were significantly less likely to be suspended from school when they had teachers who shared their racial or ethnic background.
Teachers of different backgrounds than their students tend to rely on harsh disciplinary action, when in reality the situation could come down to cultural misunderstandings or misconceptions, Shirrell said.
In the long run, this disciplinary bias can disproportionately impact underserved communities. Shirrell said relentless discipline can lead to the students making poor decisions outside of school and potentially ending up in the criminal justice system.
At such a formative age, students need the support, understanding and guidance that only a diverse population of educators can bring.
“You really can’t get that from a book,” Shirrell said. “The best way to learn that is from working alongside somebody who you know is doing things differently than you. There’s tremendous value to having a diverse workforce, whether that be racial, linguistic or economic.”
Securing an education from open-minded teachers is especially important in underserved pockets of D.C., such as Wards 7 and 8. D.C. youth can experience completely different lives and opportunities just by living around the block. Diverse educators can help fill social gaps, but having students from different economic backgrounds share a classroom pushes them to see different points of views and develop their critical thinking skills, Shirrell said.
Luckily, that sentiment rings true in D.C., a city with high social capital –– or the likelihood of low-income people and high-income people becoming friends or crossing paths. About 50% of the friends of low-income people have high incomes, and low-income people are only 4.7% less likely to friend high-income people they meet, according to Opportunity Insights.
Though there’s never one simple solution in growing economic mobility for students and their families, Cooper, the RISE executive director, said having educators who embody multiple perspectives –– as well as ensure students are aware of the financial and academic support programs available to them –– are strong ways to set a child on a brighter financial and professional path.
“There are a lot of factors that also go along with [improving economic mobility], but chances are better once students feel confident in who they are, confident in what they can do and go to college and excel,” Cooper said.
This article is part of a national initiative exploring how geography, policy, and local conditions influence access to opportunity. Find more stories at economicopportunitylab.com.
