The Wanda Alston Foundation, which assumed control over the operations of the LGBTQ community services group Casa Ruby in August under a court appointed receivership role, filed its own civil complaint on Dec. 23 in D.C. Superior Court against former Casa Ruby Executive Director Ruby Corado and eight former members of the Casa Ruby board of directors.   

News of the Wanda Alston Foundation complaint surfaced at a Jan. 6 D.C. Superior Court status hearing for the pending civil complaint against Casa Ruby and Corado filed by the Office of the D.C. Attorney General this past July and as amended by the office with additional allegations in November.

The attorney general’s complaint, among other things, alleges that Casa Ruby, under Corado’s leadership, violated the city’s Nonprofit Corporations Act in connection with its financial dealings. The amended complaint charges that Corado withdrew more than $400,000 of Casa Ruby funds for unauthorized use in El Salvador. 

For unexplained reasons, the Superior Court’s online court records, including the court docket, did not show that the Wanda Alston Foundation had filed its separate complaint against Corado and the board members as of Friday, the day of the court status hearing.

The court docket as of Jan. 6 also did not show that the Wanda Alston Foundation on Dec. 16 filed its Receiver’s Third Interim Report, which is highly critical of Corado and the Casa Ruby board. The Washington Blade obtained copies of the interim report and the Wanda Alston Foundation complaint from the court’s media and public affairs director.

The Wanda Alston Foundation complaint identifies each of the eight former board members as defendants and “respectfully request[s] restitution, compensatory damages, punitive damages, receivership fees and expenses, court costs, attorneys’ fees and expenses, and any other relief the court deems necessary and proper.”

The board of directors “failed to hold regular meetings and/or maintain official records — thereby exercising no oversight or governance over the organization,” the complaint states.

“Ever Alfaro, Carlos Gonzales, Consuella Lopez, Jackie Martinez, Hassan Naveed, Jack Quintana-Harrison (sic), Miguel Rivera and Meredith Zotlick were directors of Casa Ruby, Inc.,” the complaint says. “By neglecting their duty to provide any oversight and governance, they engaged in a persistent course of conduct that caused tortious injury to the organization,” the complaint states.

Harrison-Quintana on Saturday declined to comment to the Blade. Lopez and Naveed did not return requests for comment.

In its allegations against Corado, which it says are based on its own investigation since assuming the role as Casa Ruby receiver, the Wanda Alston Foundation complaint uses stronger language than that used in the D.C. attorney general’s complaint.

“Ms. Corado drained the organization’s accounts and unjustly enriched herself through multiple cash withdrawals, checks and money orders, wire transactions, online payment services and electronic funds transfers to herself and to other companies that she set up — embezzling over $800,000 from the organization,” the complaint states.

Superior Court Judge Danya A. Dayson, who is presiding over the Casa Ruby case, pointed out at the Jan. 6 court hearing that the Wanda Alston Foundation submitted a required court filing called a Motion for Leave asking for permission to file its own complaint against Corado, the Casa Ruby board members and the three individual companies that Corado created that are defendants in the attorney general’s complaint.

Dayson said the parties named in the Wanda Alston Foundation complaints have a right to file an objection to the Motion for Leave, and she set a deadline of Friday, Jan. 13, for filing such an objection. The judge then said if she approves the Motion for Leave by the Wanda Alston Foundation, the deadline for the parties, including Corado and the board members, to file a response to the Wanda Alston Foundation’s complaint against them will be March 6.

Dayson said the parties named in the attorney general’s complaint, which include Corado and companies she created, must also file their response to that complaint by March 6.

Corado has denied engaging in any improper financial actions and has insisted the Casa Ruby board approved her actions, including her decision to open a Casa Ruby operation in El Salvador.

In an interview last month in El Salvador, where she now lives, Corado told the Blade the allegations that D.C. officials have made against her amount to “persecution.”

At the Jan. 6 status hearing, which was held virtually through the court’s online Webex system, Corado reiterated what she has said in previous court hearings — that the D.C. government was responsible for Casa Ruby’s closing in July 2022 by withholding hundreds of thousands of dollars that Corado says the city owes Casa Ruby for services it provided under city grants. 

City officials have disputed those claims, saying the funds were withheld or discontinued because Casa Ruby did not provide the required documentation or reports showing that it performed the work associated with city grants.

Similar to an earlier court hearing in September, Corado at the Jan. 6 hearing told Dayson that she had yet to retain an attorney to represent her. Dayson told Corado that because she is named as a defendant in the attorney general’s complaint and in the complaint filed by the Wanda Alston Foundation, which is listed as a “cross complaint,” Corado or an attorney representing her must file a response to the complaints.

The judge also pointed out that Corado is listed as the registered agent for three limited liability companies that Corado created to reportedly help Casa Ruby provide services to its clients, including a Casa Ruby pharmacy. Both the attorney general’s complaint and the Wanda Alston Foundation compliant name the three LLC companies as defendants. The judge said Corado would be responsible for arranging for the three LLCs to file a response to the two complaints against them.

In its 12-page Receiver’s Third Interim Report filed in court on Dec. 16, the Wanda Alston Foundation said it conducted its own investigation into Casa Ruby’s operations using, among other things, detailed financial records it obtained from Ayala, Vado and Associates, an accounting firm that provided accounting services for Casa Ruby for over five years from at least 2016 to 2020. The documents it obtained, the report says, include multiple Casa Ruby bank records and records of cash withdrawals by Corado.

“Based on our review of the accounting firm’s records, Casa Ruby, Inc. did not collapse due to the loss of an $800,000 grant from the District of Columbia,” the report says. “In 2021, financial records show deposits from multiple revenue streams totaling $5,169,098 to M&T Tailored Business Checking Account,” the Wanda Alston Foundation report says, noting that a significant stream of income came from private donors.

“The organization failed because of multiple cash withdrawals and overseas transfers that Ms. Corado made to set herself up for a lavash retirement in El Salvador,” the report states. “She made no secret of her intentions — openly broadcasting them on social media,” it says. “When it was evident that there was no meaningful oversight by the board of directors, she finally dropped all pretenses and started openly looting the organization.”

Nick Harrison, an attorney representing the Wanda Alston Foundation in its role as the Casa Ruby receiver, told the Blade the Wanda Alston Foundation decided to file its own complaint as an extension of its mission of serving the needs of the LGBTQ community.

“In our capacity as receiver, the Wanda Alston Foundation has taken legal action in the form of a cross-party complaint and a third-party complaint to attempt to recover some of the financial losses of Casa Ruby,” Harrison said. He said the Wanda Alston Foundation complaint names Casa Ruby board members as defendants because the board “had a legal and ethical responsibility to protect the organization’s finances, the vulnerable clients they served, and the community members they employed.”

In her interview with the Blade from El Salvador in December, Corado said she believes she is being targeted because she always tells the truth and people are being distracted from the truth because of a system that benefits from “lies and defamation.”

During the Jan. 6 court hearing, Corado said she has received threats against her life since the D.C. attorney general first filed its complaint against her and the Wanda Alston Foundation released derogatory statements against her in the receiver’s reports.

“It really puts my life in danger,” she said.

Dayson scheduled the next court hearing for the Casa Ruby case on March 17.