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Ruby Corado describes D.C. civil case as ‘persecution’

Casa Ruby founder claims board approved transfer of $400,000 in funds

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Casa Ruby founder Ruby Corado in El Salvador. (Washington Blade photo by Ernesto Valle)

(Editor’s note: International News Editor Michael K. Lavers translated this interview from Spanish into English.)

SAN SALVADOR, El Salvador — Casa Ruby founder Ruby Corado told the Washington Blade on Friday during an interview in the Salvadoran capital the allegations that D.C. officials have made against her amount to “persecution.”

“This is persecution,” Corado said during an interview at a San Salvador coffee shop. “At the end of the day I am interested in people knowing all these things, because I am a human rights activist and what is happening to Ruby Corado should be an alarm for any human rights defender.”

The D.C. Department of Human Services on Sept. 24, 2021, informed Casa Ruby it was not going to renew its annual $850,000 grant that, among other things, funded Casa Ruby’s emergency “low-barrier” shelter for homeless LGBTQ youth and adults. Corado during the interview with her in El Salvador said Casa Ruby remained open and was not in debt, even though she said the D.C. government did not pay the organization for six months.

“The staff was always paid, because the organization’s principal mission is giving work to all of those people that nobody wants to employ,” she said. “The government as of today owes us around a million dollars for services we provided and we have never been reimbursed, no newspaper has said this.” 

The Office of the D.C. Attorney General in a civil complaint it filed in D.C. Superior Court on July 29, 2022, alleged Corado violated the city’s Nonprofit Corporations Act in connection with its financial dealings. D.C. Superior Court Judge Danya Dayson later placed Casa Ruby under receivership. 

She named the Wanda Alston Foundation, a D.C.-based organization that provides housing services for homeless LGBTQ youth, as the city’s receiver. The Wanda Alston Foundation in a preliminary report it filed on Sept. 13 said Casa Ruby “should be dissolved.” 

An amended civil complaint the Office of the D.C. Attorney General filed in D.C. Superior Court on Nov. 28 alleges Corado withdrew more than $400,000 of Casa Ruby funds for unauthorized use in El Salvador. 

The amended complaint, among other things, includes three new defendants to what legal observers say is the equivalent of a D.C. government lawsuit against Corado and Casa Ruby. The new defendants are limited liability companies that Corado created and controls. 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 Corado claimed the new companies — and especially the pharmacy — were part of Casa Ruby’s mission, but she never received the Casa Ruby board of directors’ approval to create them. The attorney general’s office has said the board rarely met and failed to provide any oversight of Corado’s actions.

According to the amended complaint, Corado transferred large sums of money from Casa Ruby to these companies. And at some point she transferred funds from the new companies to her own personal bank account.

Both the original complaint and the amended complaint allege 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 that the board approved. But the earlier and amended complaints allege the board never authorized the El Salvador operation.

The amended complaint says Corado between April 2021 and September 2022 transferred more than $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.”

Corado told the Blade she feels targeted because she always tells the truth. Corado added people are distracted from the truth because of a system that benefits from “lies and defamation.”

“People know my work and have seen me working and because of this there are many people who continue to support me,” she said.

The Blade in March 2021 interviewed Corado about the opening of Casa Ruby in El Salvador.

“Our work at Casa Ruby is to avoid suffering and [to offer] support through alliances, that is why we aim to share the programs for migrants that work in Washington because we have seen that they work,” she said during an interview from Casa Ruby’s new office in San Salvador, on March 18, 2021. “We will do a little more work here in El Salvador so that the LGBTQ community has greater access to these opportunities.”

Corado said part of this work included the purchase of a restaurant and nightclub in order to create jobs for LGBTQ people. Corado also opened a shelter “with limited resources, not like what had been done in Washington” and offered makeup classes and other workshops that allowed clients to learn skills to support themselves. 

Casa Ruby founder Ruby Corado stands outside Casa Ruby’s new office in San Salvador, El Salvador, in March 2021. (Photo courtesy of Ruby Corado)

Corado said she began these projects with money she obtained through the sale of her home in D.C. and through her own salary. Corado categorically denied allegations that she withdrew more than $400,000 from Casa Ruby’s bank accounts without the board’s approval.

“I have everything documented in writing, where [the board] approved my salary and also where the $400,000 was approved,” said Corado. 

Corado said the board always knew about the El Salvador project, which she said was part of her strategy for Casa Ruby to expand its work outside the U.S. to countries that include Guatemala and Nicaragua. Corado also denied the allegation the majority of Casa Ruby employees were paid less than $15 an hour, which is less than the D.C. minimum wage as of July 1, 2021.

The minimum wage on that date rose to $15.20 an hour.

“Does the prosecutor want to spend resources investigating Ruby Corado and throwing away her work — as they have wanted to do for the last eight years — instead of feeding the needy,” said Corado. “Let them do it.”

“The project that I presented was a priority that President Biden had, which was giving money to NGOs to ensure that people don’t continue to migrate,” added Corado. “I didn’t invent anything that wasn’t already on the agenda.”

Corado noted she was among the LGBTQ and intersex activists who met with Biden in 2021.

“I went and I talked about what the barriers were,” she said. “One of them is local government relationships with the community.”

Corado said she has “more information that she cannot reveal,” but stressed she will do it through the court system. Corado told the Blade she was afraid to speak up because she did not want to jeopardize Casa Ruby’s funding.

The next court hearing in the Casa Ruby civil case is scheduled to take place on Jan. 6, and Corado is expected to attend.

‘I never kissed anyone’s ass’

Corado was born in El Salvador.

She said one of the reasons she decided to open Casa Ruby in the country was because she needed to “heal inside” and “take care of myself” from the trauma she said she suffered during the country’s civil war, from her life on the streets of D.C. and from the loss of several people close to Casa Ruby.

She said she had issued reports about hate crimes in D.C. and the Office of the Attorney General did not work with her. Corado said she once told D.C. Attorney General Karl Racine during a meeting that she did not think he was doing enough to help the city’s LGBTQ community.

“I was on this man’s black list from that moment on,” Corado said.

Corado once again described Racine’s allegations and the tweets he made against her as baseless, and she has made her opinion to the judge known.

“I never kissed anyone’s ass. I don’t expect these people now, after 30 years, to come and approve my work,” Corado emphasized.

The office of D.C. Attorney General Racine released a statement to the Blade in response to questions about Corado’s accusations. “We opened an investigation after public reporting in the Washington Post on July 17th suggested Casa Ruby had engaged in serious violations of the District’s nonprofit laws, which our office is responsible for enforcing,” the statement read. “Our complaint, and the remarkable amount of evidence we’ve uncovered in just a short time, speaks for itself.”

Corado also said she continues to receive death threats, and her car was vandalized when she was last in D.C.

“I was staying with a friend and someone came to the apartment wanting to hurt or kill me,” she said. “I don’t know.”

Lou Chibbaro, Jr. contributed to this story.

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District of Columbia

Rush reopens after renewing suspended liquor license

Principal owner says he’s working  to resolve payroll issue for unpaid staff

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Pictured is a scene from the preview night at Rush on Nov. 28. Rush reopened on Saturday after a brief closure. (Blade file photo by Michael Key)

The D.C. LGBTQ bar and nightclub Rush reopened and was serving drinks to customers on Saturday night, Dec. 20, under a renewed liquor license three days after the city’s Alcoholic Beverage and Cannabis Board suspended the license on grounds that Rush failed to pay a required annual licensing fee.

In its Dec. 17 order suspending the Rush liquor license the ABC Board stated the “payment check was returned unpaid and alternative payment was not submitted.”

Jackson Mosley, Rush’s principal owner, says in a statement posted on the Rush website that the check did not “bounce,” as rumors circulating in the community have claimed. He said a decision was made to put a “hold” on the check so that Rush could change its initial decision to submit a payment for the license for three years and instead to pay a lower price for a one-year payment.

“Various fees and fines were added to the amount, making it necessary to replace the stop-payment check in person – a deadline that was Wednesday despite my attempts to delay it due to these circumstances,” Mosley states in his message.

He told the Washington Blade in an interview inside Rush on Saturday night, Dec. 20, that the Alcoholic Beverage and Cannabis Administration (ABCA) quickly processed Rush’s liquor license renewal following his visit to submit a new check.

He also reiterated in the interview some of the details he explained in his Rush website statement regarding a payroll problem that resulted in his employees not being paid for their first month’s work at Rush, which was scheduled to take place Dec. 15 through a direct deposit into the employees’ bank accounts.

Several employees set up a GoFundMe appeal in which they stated they “showed up, worked hard, and were left unpaid after contributing their time, labor, and professional skills to Rush, D.C.’s newest LGBTQ bar.” 

In his website statement Mosley says employees were not paid because of a “tax related mismatch between federal and District records,” which, among other things, involves the IRS. He said the IRS was using his former company legal name Green Zebra LLC while D.C. officials are using his current company legal name Rainbow Zebra LLC. 

“This discrepancy triggered a compliance hold within our payroll system,” he says in his statement. “The moment I became aware of the issue, I immediately engaged our payroll provider and began working to resolve it,” he wrote.

He added that while he is the founder and CEO of Rush’s parent and management company called Momentux, company investors play a role in making various decisions, and that the investors rather than he control a “syndicated treasury account” that funds and operates the payroll system.

He told the Blade that he and others involved with the company were working hard to resolve the payroll problem as soon as possible. 

“Every employee – past or present – will receive the pay they are owed in accordance with D.C. and federal law,” he says in his statement. “That remains my priority.” 

In a follow-up text message to the Blade on Sunday night, Dec. 21, Mosley said, “All performers, DJs, etc. have been fully paid.” 

He said Rush had 21 employees but “2 were let go for gross misconduct, 2 were let go for misconduct, 1 for moral turpitude, 2 for performance concerns.” He added that all of the remaining 14 employees have returned to work at the time of the reopening on Dec. 20. 

Rush held its grand opening on Dec. 5 on the second and third floors of a building at 2001 14th Street, N.W., with its entrance around the corner on U Street next to the existing LGBTQ dance club Bunker. 

With at least a half dozen or more LGBTQ bars located within walking distance of Rush in the U Street entertainment corridor, Mosley told the Blade he believes some of the competing LGBTQ bars, which he says believe Rush will take away their customers, may be responsible along with former employees of “rumors” disparaging him and Rush. 

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Rehoboth Beach

Rehoboth’s Blue Moon is for sale but owners aim to keep it in gay-friendly hands

$4.5 million listing includes real estate; business sold separately

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The real estate at Rehoboth’s Blue Moon is for sale for $4.5 million. (Washington Blade photo by Michael Key)

Gay gasps could be heard around the DMV earlier this week when a real estate listing for Rehoboth Beach’s iconic Blue Moon bar and restaurant hit social media.

Take a breath. The Moon is for sale but the longtime owners are not in a hurry and are committed to preserving its legacy as a gay-friendly space.

“We had no idea the interest this would create,” Tim Ragan, one of the owners, told the Blade this week. “I guess I was a little naive about that.”

Ragan explained that he and longtime partner Randy Haney are separating the real estate from the business. The two buildings associated with the sale are listed by Carrie Lingo at 35 Baltimore Ave., and include an apartment, the front restaurant (6,600 square feet with three floors and a basement), and a secondary building (roughly 1,800 square feet on two floors). They are listed for $4.5 million. 

The bar and restaurant business is being sold separately; the price has not been publicly disclosed. 

But Ragan, who has owned the Moon for 20 years, told the Blade nothing is imminent and that the Moon remains open through the holidays and is scheduled to reopen for the 2026 season on Feb. 10. He has already scheduled some 2026 entertainment. 

“It’s time to look for the next people who can continue the history of the Moon and cultivate the next chapter,” Ragan said, noting that he turns 70 next year. “We’re not panicked; we separated the building from the business. Some buyers can’t afford both.” 

He said there have been many inquiries and they’ve considered some offers but nothing is firm yet. 

Given the Moon’s pioneering role in queering Rehoboth Beach since its debut 44 years ago in 1981, many LGBTQ visitors and residents are concerned about losing such an iconic queer space to redevelopment or chain ownership.

“That’s the No. 1 consideration,” Ragan said, “preserving a commitment to the gay community and honoring its history. The legacy needs to continue.” He added that they are not inclined to sell to one of the local restaurant chains.

You can view the real estate listing here.

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Local

Comings & Goings

Tristan Fitzpatrick joins TerraPower

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Tristan Fitzpatrick

The Comings & Goings column is about sharing the professional successes of our community. We want to recognize those landing new jobs, new clients for their business, joining boards of organizations and other achievements. Please share your successes with us at [email protected]

Congratulations to Tristan Fitzpatrick on his new position as Digital Communications Manager with TerraPower. TerraPower creates technologies to provide safe, affordable, and abundant carbon-free energy. They devise ways to use heat and electricity to drive economic growth while decarbonizing industry.

Fitzpatrick’s most recent position was as Senior Communications Consultant with APCO in Washington, D.C. He led integrated communications campaigns at the fourth-largest public relations firm in the United States, increasing share of voice by 10 percent on average for clients in the climate, energy, health, manufacturing, and the technology. Prior to that he was a journalist and social media coordinator with Science Node in Bloomington, Ind. 

Fitzpatrick earned his bachelor’s degree in journalism with a concentration in public relations, from Indiana University.

Congratulations also to the newly elected board of Q Street. Rob Curis, Abigail Harris, Yesenia Henninger, Stu Malec, and David Reid. Four of them reelected, and the new member is Harris. 

Q Street is the nonprofit, nonpartisan, professional association of LGBTQ+ policy and political professionals, including lobbyists and public policy advocates. Founded in 2003 on the heels of the Supreme Court’s historic decision in Lawrence v. Texas, when there was renewed hope for advancing the rights of the LGBTQ community in Washington. Q Street was formed to be the bridge between LGBTQ advocacy organizations, LGBTQ lobbyists on K Street, and colleagues and allies on Capitol Hill.

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