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District of Columbia

Casa Ruby receiver appeals decision dismissing lawsuit against former board

Case against founder Ruby Corado continues

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The lawsuit names Casa Ruby founder and former executive director Ruby Corado as a defendant. (Blade file photo by Ernesto Valle)

The Wanda Alston Foundation, which assumed control over the operations of the D.C. LGBTQ community services group Casa Ruby in August 2022 under a court appointed receivership role, last week filed papers before the D.C. Court of Appeals contesting a May 1, 2023, decision by a D.C. Superior Court judge dismissing a lawsuit against seven of the eight former Casa Ruby board members who the Alston Foundation named as defendants.  

The lawsuit, which the Alston Foundation filed Dec. 23, 2022,  accuses all eight former Casa Ruby board members of violating D.C.’s nonprofit corporation law by failing to  “hold regular meetings and/or maintain official records – thereby exercising no oversight or governance over the organization.”

The lawsuit also names Casa Ruby founder and former executive director Ruby Corado as a defendant who it says is also responsible for Casa Ruby’s downfall.

The Alston Foundation’s lawsuit followed a separate civil complaint filed against Casa Ruby in July 2022 by the Office of the D.C. Attorney General, which alleges that Casa Ruby, under Corado’s leadership, violated the city’s Nonprofit Corporations Act in connection with its financial dealings, including Corado’s alleged unauthorized withdrawal of funds from Casa Ruby.

In a report it released last year, the Alston Foundation said its own investigation into Casa Ruby’s financial records show that Corado allegedly embezzled over $800,000 from the organization, with the board failing to take steps to prevent that from happening.

Corado has denied the allegations against her, saying her withdrawal of funds from Casa Ruby accounts, some of which she said was for her establishing a Casa Ruby outpost in El Salvador, were all approved by the board.

The lawsuit calls on the court to require Corado and the former board members to pay “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.”

In her May 2023 decision, D.C. Superior Court Judge Danya A. Dayson dismissed the lawsuit against seven of the eight former Casa Ruby board members but did not dismiss the case against Corado. The judge also did not dismiss the case against former board member Consuella Lopez, citing evidence presented in the lawsuit that Lopez received some financial benefits from Corado. 

Lopez didn’t immediately respond to a request for comment by the Washington Blade. The other board members have declined requests for comment at the time the lawsuit was filed.  

Dayson states in her decision that her dismissal of the lawsuit against the seven board members was based on her interpretation of a D.C. law that says members of an organization’s board of directors can only be held liable for harming an organization like Casa Ruby if they “intentionally, rather than negligently, inflicted harm on Casa Ruby.”

The judge states in her ruling that the law in question also says board members can be held responsible for harming an organization if a “board member intentionally violated a criminal law or that the board member received some amount of money to which they were not entitled.” Dayson states in her ruling that the Alston Foundation lawsuit does not provide sufficient evidence that the seven board members committed those types of violations.

Attorneys with the D.C. law firm Wiley Rein LLP, who are representing the Alston Foundation, dispute the judge’s interpretation of the law. They argue in a 23-page legal brief filed with the D.C. Court of Appeals on Feb. 26 that the Alston Foundation’s Third Interim Report in its role as the Casa Ruby receiver provides sufficient evidence that the former board members are legally liable for harming Casa Ruby.

Their legal brief says based on that report, among other evidence, the court could find that the former board members “were deliberately  indifferent or ‘willfully blind’ to the alleged wrongful conduct of the non-profit’s executive director amounting to actual knowledge on their part that inaction would harm the non-profit, ultimately and forcibly leading to its financial inability to continue operating.”

 The brief adds that if the judge’s dismissal ruling is upheld, it would have an adverse impact on other nonprofit organizations whose board members fail to adequately oversee the organizations.

“If the Superior Court’s order is allowed to stand, directors could both abdicate these responsibilities and claim not to know that such addiction would have adverse consequences for their organizations with impunity,” it says. “Indeed, such a standard essentially provides non-profit directors with an incentive to engage in a ‘see-no-evil’ hands off approach to their responsibilities under circumstances in which the Nonprofit Corporations Act expressly contemplates the opposite.”

Under court rules, the former board members will be given an opportunity through their attorneys to file a response objecting to the Alston Foundation’s appeal of the dismissal ruling.

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District of Columbia

Bowser appoints first nonbinary person to Cabinet-level position

Peter Stephan named Office of Disability Rights interim director

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The Wilson Building (Bigstock photo by Leonid Andronov)

D.C. Mayor Muriel Bower has named longtime disability rights advocate Peter L. Stephan, who identifies as nonbinary, as interim director of the D.C. Office of Disability Rights.

The local transgender and nonbinary advocacy group Our Trans Capital and the LGBTQ group Capital Stonewall Democrats issued a joint statement calling Stephan’s appointment an historic development as the first-ever appointment of a nonbinary person to a Cabinet-level D.C. government position.

“This milestone appointment recognizes Stephan’s extensive expertise in disability rights advocacy and marks a historic advancement for transgender and nonbinary representation in District government leadership,” the statement says.

The statement notes that Stephan, an attorney, held the position of general counsel at the Office of Disability Rights immediately prior to the mayor’s decision to name him interim director.

The mayor’s office didn’t immediately respond to a question from the Washington Blade asking if Bowser plans to name Stephan as the permanent director of the Office of Disability Rights. John Fanning, a spokesperson for D.C. Council member Anita Bonds (D-At-Large), said the office’s director position requires confirmation by the Council.

Stephan couldn’t immediately be reached for comment.

“At a time when trans and nonbinary people ae under attack across the country, D.C. continues to lead by example,” said Stevie McCarty, president of Capital Stonewall Democrats. “This appointment reflects what we have always believed that our community is always strongest when every voice is represented in government,” he said.

“This is a historic step forward,” said Vida Rengel, founder of Our Trans Capital. “Interim Director Stephan’s career and accomplishments are a shining example of the positive impact that trans and nonbinary public servants can have on our communities,” according to Rangel. 

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District of Columbia

Capital Stonewall Democrats set to celebrate 50th anniversary

Mayor Bowser expected to attend March 20 event

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Mayor Bowser is expected to attend the Capital Stonewall Democrats 50th gala. (Blade file photo by Michael Key)

D.C. Mayor Muriel Bowser, members of the D.C. Council, and local and national Democratic Party officials are expected to join more than 150 LGBTQ advocates and supporters on March 20 for the 50th anniversary celebration of the city’s Capital Stonewall Democrats.   

 A statement released by the organization says the event is scheduled to be held at the Pepco Edison Place Gallery building at 702 8th St., N.W. in D.C.

“The evening will honor the people who built Capital Stonewall Democrats across five decades – activists who fought for rights when the odds were against them, public servants who opened doors and refused to let them close, and a new generation of leaders ready to carry the work forward,” the statement says.

Founded in 1976 as the Gertrude Stein Democratic Club, the organization’s members voted in 2021 to change its name to the Capital Stonewall Democrats.

Among those planning to attend the anniversary event is longtime D.C. gay Democratic activist Paul Kuntzler, 84, who is one of the two co-founders of the then-Gertrude Stein Democratic Club. Kuntzler told the Washington Blade that he and co-founder Richard Maulsby were joined by about a dozen others in the living room of his Southwest D.C. home at the group’s founding meeting in January 1976.

He said that among the reasons for forming a local LGBTQ Democratic group at the time was to arrange for a then “gay” presence at the 1976 Democratic National Convention, at which Jimmy Carter won the Democratic nomination for U.S. president and later won election as president.

Maulsby, who served as the Stein Club president for its first three years and who now lives in Sarasota, Fla., said he would not be attending the March 20 anniversary event, but he fully supports the organization’s continuing work as an LGBTQ organization associated with the Democratic Party.

Steven McCarty, Capital Stonewall Democrats’ current president, said in the statement that the anniversary celebration will highlight the organization’s work since the time of its founding.

 “Capital Stonewall Democrats has been fighting for LGBTQ+ political power in this city for 50 years, electing people, training organizers, holding this community together through some really hard moments,” he said. “And right now, with everything going on, that work has never mattered more. This gala is the first moment of our next chapter, and I want the community to be a part of it.”

The statement says among the special guests attending the event will be Democratic National Committee Vice Chair Malcolm Kenyatta, who became the first openly gay LGBTQ person of color to win election to the Pennsylvania General Assembly in 2018.

Other guests of honor, according to the statement, include Mayor Bowser; D.C. Council member Zachary Parker (D-Ward 5, the Council’s only gay member; D.C. Council member Anita Bonds (D-At-Large); Earl Fowlkes, founder of the  International Federation of Black Prides; Vita Rangel, a transgender woman who serves as Deputy Director of the D.C.  Mayor’s Office of Talent and Appointments; Heidi Ellis, director of the D.C. LGBTQ Budget Coalition; Rayceen Pendarvis, longtime D.C. LGBTQ civic activist; and Phillip Pannell, longtime D.C. LGBTQ Democratic activist and Ward 8 civic activist.

Information about ticket availability for the Capital Stonewall Democrats anniversary gala can be accessed here: capitalstonewalldemocrats.com/50th

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District of Columbia

Owner of D.C. gay bar Green Lantern John Colameco dies at 79

Beloved businessman preferred to stay ‘behind the scenes’

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John Colameco, owner of the Green Lantern, died of undisclosed causes.

John Colameco, owner of the popular D.C. gay bar Green Lantern, has died, according to a March 7 announcement posted on the bar’s website and Instagram account. The announcement didn’t provide a date of his passing or a cause of death.

Green Lantern manager Howard Hicks said Colameco was 79 at the time of his passing.

“It is with great sadness that Green Lantern announces the death of our beloved owner, John Colameco,” the announcement says. “Most of our patrons might have heard John’s name, but might not have known his face,” it says.

“He was a ‘behind-the-scenes’ kind of guy who avoided the limelight,” the announcement continues. “He preferred to stay in the back of the house with staff and team ensuring everything was running smoothly so that everyone out front was having a good time.”

The announcement adds, “As a veteran and businessman, John wasn’t a member of the LGBTQ + community, but he was one of the best damn allies our community has ever had.”

It says he “long provided spaces for the queer community to come together” since the 1990s when he owned and operated a popular restaurant on 17th Street, N.W. called Peppers.

According to the announcement, Colameco and his then business partner Greg Zehnacker opened the Green Lantern in 2001 in an alley off of 14th Street, N.W., between Thomas Circle and L Street, N.W. 

The announcement points out that the Green Lantern first opened in the same location in the early 1990s before it later closed when the original owners decided to purchase and open other bars, one of which was the gay bar Fireplace near Dupont Circle. Colameco and Zehnacker were able to reopen the bar with the Green Lantern name.

“When Greg died unexpectedly in February 2014, John remained steadfastly committed to carrying on their vision and ensuring that Green Lantern remained part of the fabric of D.C.’s queer community,” the announcement says.

“Over the years, through Green Lantern, John has provided support to many community organizations, most notably Stonewall Sports, the Gay Men’s chorus of Washington, and ONYX Mid-Atlantic with Green Lantern serving as a gathering hub for their activities,” it states.

The announcement adds that Colameco’s family was planning a memorial for him in his hometown of Philadelphia.

“His Green Lantern family will celebrate his life by operating the bar as usual and we encourage you to stop by and join us,” it says. “Community coming together and having a good time – it’s exactly what John would want.”

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