District of Columbia
Casa Ruby receiver appeals decision dismissing lawsuit against former board
Case against founder Ruby Corado continues
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.
District of Columbia
D.C.’s annual MLK Peace Walk and Parade set for Jan. 19
LGBTQ participants expected to join mayor’s contingent
Similar to past years, members of the LGBTQ community were expected to participate in D.C.’s 21st annual Martin Luther King Jr. Day Peace Walk and Parade scheduled to take place Monday, Jan. 19.
Organizers announced this year’s Peace Walk, which takes place ahead of the parade, was scheduled to begin at 10:30 a.m. at the site of a Peace Rally set to begin at 9:30 a.m. at the intersection of Firth Sterling Avenue and Sumner Road, S.E., a short distance from Martin Luther King Jr. Avenue.
The Peace Walk and the parade, which is scheduled to begin at 11 a.m. at the same location, will each travel along Martin Luther King Jr. Avenue a little over a half mile to Marion Barry Avenue near the 11th Street Bridge where they will end.
Japer Bowles, director of D.C. Mayor Muriel Bowser’s Office of LGBTQ Affairs, said he and members of his staff would be marching in the parade as part of the mayor’s parade contingent. In past years, LGBTQ community members have also joined the mayor’s parade contingent.
Stuart Anderson, one of the MLK Day parade organizers, said he was not aware of any specific LGBTQ organizations that had signed up as a parade contingent for this year’s parade. LGBTQ group contingents have joined the parade in past years.
Denise Rolark Barnes, one of the lead D.C. MLK Day event organizers, said LGBTQ participants often join parade contingents associated with other organizations.
Barnes said a Health and Wellness Fair was scheduled to take place on the day of the parade along the parade route in a PNC Bank parking lot at 2031 Martin Luther King Jr. Ave., S.E.
A statement on the D.C. MLK Day website describes the parade’s history and impact on the community.
“Established to honor the life and legacy of Rev. Dr. Martin Luther King, Jr., the parade united residents of Ward 8, the District, and the entire region in the national movement to make Dr. King’s birthday a federal holiday,” the statement says. “Today, the parade not only celebrates its historic roots but also promotes peace and non-violence, spotlights organizations that serve the community, and showcases the talent and pride of school-aged children performing for family, friends, and community members.”
District of Columbia
Ruby Corado sentenced to 33 months in prison
Former Casa Ruby director pleaded guilty to wire fraud in 2024
A federal judge on Jan. 13 sentenced Ruby Corado, the founder and former executive director of the now closed D.C. LGBTQ community services organization Casa Ruby, to 33 months of incarceration for a charge of wire fraud to which she pleaded guilty in July 2024.
U.S. District Court Judge Trevor M. McFadden handed down the sentence that had been requested by prosecutors with the Office of the U.S. Attorney for the District of Columbia after Corado’s sentencing had been postponed six times for various reasons.
The judge also sentenced her to 24 months of supervised release upon her completion of incarceration.
In addition to the sentence of incarceration, McFadden agreed to a request by prosecutors to hold Corado responsible for “restitution” and “forfeiture” in the amount of $956,215 that prosecutors have said she illegally misappropriated from federal loans obtained by Casa Ruby.
The charge to which she pleaded guilty is based on allegations that she diverted at least $180,000 “in taxpayer backed emergency COVID relief funds to private offshore bank accounts,” according to court documents.
Court records show FBI agents arrested Corado on March 5, 2024, at a hotel in Laurel, Md., shortly after she returned to the U.S. from El Salvador, where authorities say she moved in 2022. Prosecutors have said in charging documents that she allegedly fled to El Salvador, where she was born, after “financial irregularities at Casa Ruby became public,” and the LGBTQ organization ceased operating.
Shortly after her arrest, another judge agreed to release Corado into the custody of her niece in Rockville, Md., under a home detention order. But at an Oct. 14, 2025, court hearing at which the sentencing was postponed after Corado’s court appointed attorney withdrew from the case, McFadden ordered Corado to be held in jail until the time of her once again rescheduled sentencing.
Her attorney at the time, Elizabeth Mullin, stated in a court motion that her reason for withdrawing from the case was an “irreconcilable breakdown in the attorney-client relationship.”
Corado’s newly retained attorney, Pleasant Brodnax, filed a 25-page defense Memorandum in Aid of Sentencing on Jan. 6, calling for the judge to sentence Corado only to the time she had already served in detention since October.
Among other things, Brodnax’s defense memorandum disputes the claim by prosecutors that Corado improperly diverted as much as $956,215 from federally backed loans to Casa Ruby, saying the total amount Corado diverted was $200,000. Her memo also states that Corado diverted the funds to a bank account in El Salvador for the purpose of opening a Casa Ruby facility there, not to be used for her personally.
“Ms. Corado has accepted responsibility for transferring a portion of the loan disbursements into another account she operated and ultimately transferring a portion of the loan disbursements to an account in El Salvador,” the memo continues.
“Her purpose in transferring funds to El Salvador was to fund Casa Ruby programs in El Salvador,” it says, adding, “Of course, she acknowledges that the terms of the loan agreement did not permit her to transfer the funds to El Salvador for any purpose.”
In his own 16-page sentencing recommendation memo, Assistant U.S. Attorney John Borchert, the lead prosecutor in the case, said Corado’s action amounted at the least to fraud.
“The defendant and Casa Ruby received no less than $1.2 million in taxpayer backed funds during the COVID-19 global health crisis,” he memo states. “But rather than use those funds to support Casa Ruby’s mission as the defendant promised, the defendant further contributed to its demise by unlawfully transferring no less than $180,000 of these federal emergency relief funds into her own private offshore bank accounts,” it says.
“Then, when media reports suggested the defendant would be prosecuted for squandering Casa Ruby’s government funding, she sold her home and fled the country,” the memo states. “Meanwhile, the people who she had promised to pay with taxpayer-backed funds – her employees, landlord, and vendors – were left behind flat broke.”
A spokesperson for the U.S. Attorney’s office and Corado’s attorney didn’t immediately respond to a request from the Washington Blade for comment on the judge’s sentence.
“Ms. Corado accepts full responsibility for her actions in this case,” defense attorney Brodnax says in her sentencing memo. “She acknowledges the false statements made in the loan applications and that she used some of the money outside the United States,” it says.
“However, the money was still utilized for the same purpose and intention as the funds used in the United States, to assist the LGBTQ community,” it states. “Ms. Corado did not use the money to buy lavish goods or fund a lavish lifestyle.”
Brodnax also states in her memo that as a transgender woman, Corado could face abuse and danger in a correctional facility where she may be sent if sentenced to incarceration.
“Ruby Corado committed a crime, she is now paying the price,” said D.C. LGBTQ rights advocate Peter Rosenstein. “While it is sad in many ways, we must remember she hurt the transgender community with what she did, and in many ways they all paid for her crime.”
District of Columbia
Kennedy Center renaming triggers backlash
Artists who cancel shows threatened; calls for funding boycott grow
Efforts to rename the Kennedy Center to add President Trump’s name to the D.C. arts institution continue to spark backlash.
A new petition from Qommittee , a national network of drag artists and allies led by survivors of hate crimes, calls on Kennedy Center donors to suspend funding to the center until “artistic independence is restored, and to redirect support to banned or censored artists.”
“While Trump won’t back down, the donors who contribute nearly $100 million annually to the Kennedy Center can afford to take a stand,” the petition reads. “Money talks. When donors fund censorship, they don’t just harm one institution – they tell marginalized communities their stories don’t deserve to be told.”
The petition can be found here.
Meanwhile, a decision by several prominent musicians and jazz performers to cancel their shows at the recently renamed Trump-Kennedy Center in D.C. planned for Christmas Eve and New Year’s Eve has drawn the ire of the Center’s president, Richard Grenell.
Grenell, a gay supporter of President Donald Trump who served as U.S. ambassador to Germany during Trump’s first term as president, was named Kennedy Center president last year by its board of directors that had been appointed by Trump.
Last month the board voted to change the official name of the center from the John F. Kennedy Memorial Center For The Performing Arts to the Donald J. Trump And The John F. Kennedy Memorial Center For The Performing Arts. The revised name has been installed on the outside wall of the center’s building but is not official because any name change would require congressional action.
According to a report by the New York Times, Grenell informed jazz musician Chuck Redd, who cancelled a 2025 Christmas Eve concert that he has hosted at the Kennedy Center for nearly 20 years in response to the name change, that Grenell planned to arrange for the center to file a lawsuit against him for the cancellation.
“Your decision to withdraw at the last moment — explicitly in response to the Center’s recent renaming, which honors President Trump’s extraordinary efforts to save this national treasure — is classic intolerance and very costly to a non-profit arts institution,” the Times quoted Grenell as saying in a letter to Redd.
“This is your official notice that we will seek $1 million in damages from you for this political stunt,” the Times quoted Grenell’s letter as saying.
A spokesperson for the Trump-Kennedy Center did not immediately respond to an inquiry from the Washington Blade asking if the center still planned to file that lawsuit and whether it planned to file suits against some of the other musicians who recently cancelled their performances following the name change.
In a follow-up story published on Dec. 29, the New York Times reported that a prominent jazz ensemble and a New York dance company had canceled performances scheduled to take place on New Year’s Eve at the Kennedy Center.
The Times reported the jazz ensemble called The Cookers did not give a reason for the cancellation in a statement it released, but its drummer, Billy Hart, told the Times the center’s name change “evidently” played a role in the decision to cancel the performance.
Grenell released a statement on Dec. 29 calling these and other performers who cancelled their shows “far left political activists” who he said had been booked by the Kennedy Center’s previous leadership.
“Boycotting the arts to show you support the arts is a form of derangement syndrome,” the Times quoted him as saying in his statement.
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