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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

Mary’s House founder, CEO retires

Dr. Imani Woody played leading role in opening DC’s first home for LGBTQ seniors

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Imani Woody and Japer Bowles, director of the Mayor's Office of LGBTQ Affairs, which provides grant funding to Mary's House, pose inside Mary's House following the 2025 ribbon cutting ceremony. Woody has retired as Mary's House's CEO. (Washington Blade photo by Lou Chibbaro, Jr.)

The board of directors for Mary’s House for Older Adults, DC’s first official home dedicated to providing affordable housing for LGBTQ seniors, announced on July 7 that its founding president and CEO, Dr. Imani Woody, has retired.

Woody, who holds a PhD in Human Services, is credited with playing a leading role over many years in arranging both city and private funding needed to construct and operate the Mary’s House three-story building located at 401 Anacostia Road, S.E., in the city’s Fort Dupont neighborhood.

The house, which opened in March 2025, with a grand opening ceremony held in May 2025, includes 15 single-occupancy residential units and more than 5,000 square feet of shared communal living space.

“It is with profound gratitude and hearts full of celebration that the board of directors of Mary’s House for Older Adults, DC (MHFOA) announces the retirement of our visionary founder, Dr. Imani Woody, from her role as president and CEO,” the Mary’s House board says in a statement.

“Dr. Woody’s journey with Mary’s House began with her vision and a kitchen table gathering of women with a bold, urgent, and loving vision: to create safe, affirming, affordable housing for LGBTQ/SGL older adults in Washington, DC,” the statement says.

It adds, “What started as a dream has grown into DC’s first affordable LGBTQ+/SGL affirming communal living space for adults 60 and over, a 15-room community residence at 401 Anacostia Road in Southeast Washington.”

The statement says Woody will continue to serve on Mary’s House board.

“The board will be sharing information about the leadership transition process in the coming weeks,” the statement continues. “We are committed to honoring Dr. Woody’s legacy by ensuring Mary’s House continues to thrive and grow in faithful service to LGBTQ/SGL elders experiencing housing insecurity and isolation.”

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District of Columbia

SMYAL receives $25,000 award for ‘courageous acts’

D.C. group provides support services for LGBTQ youth

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SMYAL CEO Erin Whelan (Washington Blade photo by Michael Key)

The D.C.-based organization SMYAL, which provides services for LGBTQ youth in the D.C. metro area, including housing for homeless LGBTQ youth, announced on June 30 that it received a $25,000 award for its “courageous acts” in support of the community it serves.

The award was a monetary grant from The Courage Project, which describes itself as a “national initiative investing in acts of courage and compassion that strengthens our communities and democracy.” 

A statement on its website says it was launched in May 2025 and is funded and backed by leading national foundations in the U.S.

“At SMYAL, we are deeply grateful to receive support from The Courage Project and are inspired by their bold investment in LGBTQ+ youth at such a critical moment,” SMYAL CEO Erin Whelan said in a statement. “For queer and trans young people, simply showing up as themselves each day requires immense courage, and that courage is strengthened when organizations like The Courage Project stand behind them loudly, proudly, and without hesitation,” Whelan said.

In its statement announcing the award SMYAL says The Courage Project will recognize SMYAL and other awardees and their work on July 3 at the Washington National Cathedral as part of a special interfaith service marking the U.S. 250th anniversary.

“The Courage Project is a bold initiative honoring everyday acts of bravery – the quiet, often unseen acts of heroism that reflect the best of the American spirit and strengthen democracy at the community level,” the project states on its website.

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District of Columbia

Longtime Blade staffer Stephen Rutgers steps down after 14 years

Plans to focus on running Crush Dance Bar, other ventures

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Stephen Rutgers (left) with Blade Editor Kevin Naff at Pride on the Pier in 2025.

Longtime Washington Blade employee Stephen Rutgers announced he is stepping down after 14 years to focus on other ventures, including his part ownership of the popular Crush Dance Bar

Rutgers was hired by the Blade in 2012 to help plan Pride festivities and over the years was promoted to director of sales and marketing. In addition to his broad set of responsibilities, Rutgers planned the annual Pride on the Pier celebration at the Wharf, which has exploded in popularity over the seven years since its launch.

“Watching Pride on the Pier grow from a new community event into one of D.C.’s signature Pride celebrations has been incredibly rewarding,” Rutgers said. “Expanding Pride on the Pier into a two-day festival for WorldPride in 2025 was definitely a career highlight. Seeing thousands of people come together to celebrate our community while supporting the Blade’s mission is something I’ll always be proud of.”

A scene from Pride on the Pier and Fireworks Show during WorldPride 2025. (Washington Blade photo by Michael Key)

Rutgers described his biggest challenge as navigating the changing media landscape. 

“More than ever, we’ve had to remind our community that local journalism matters and that it needs their support,” he said.

He added that he’s most proud of helping to ensure the Washington Blade is positioned to thrive for the next 50 years.

“I was fortunate to be part of the Blade during its 50th anniversary — a milestone that reflects its incredible history and impact,” Rutgers said. “The Blade has been an important voice for the LGBTQ community for more than five decades, and knowing I played a small part in helping its future is most important to me.” 

Blade Publisher Brian Pitts praised Rutgers for juggling multiple responsibilities.

“We wish Stephen all the best,” Pitts said. “For the past 14 years, Stephen has been a vital part of the Blade, handling many things — marketing and advertising, sponsorships, and Blade signature events. We will all miss him.”  

Blade Editor Kevin Naff thanked Rutgers for his years of service to the community.

“After 14 years, it’s hard to imagine the Blade without Stephen and his boundless energy and creativity,” Naff said. “He’s one of the hardest working and most dedicated people I’ve ever known and he will be missed. But change is the only constant and I know Stephen will move on successfully to new challenges and the Blade will expand on Stephen’s important work.”

As for what’s next for Rutgers, he said he plans to focus on Crush as well as his real estate business.

“I’ve always been someone who likes to stay busy,” Rutgers said. “For the past 12 years, I’ve balanced my work at the Blade and in real estate. Two years ago when I opened Crush, I never realized just how much time and energy it would take. The passing of my father earlier this year also gave me a new perspective. It reminded me that life is short and that it’s important to make time for the people and experiences that matter most. Stepping away from the Blade will allow me to focus on those ventures while also creating more balance in my life. After 14 incredible years, it feels like the right time for a new chapter.”

Naff said that for now Rutgers’s responsibilities will be divided between existing staff along with several new freelance contractors. 

“The Washington Blade plays a unique role in our community’s fight for equality,” Rutgers said. “It’s the only LGBTQ news organization with White House credentials, giving it direct access to the people and institutions shaping policies that affect our community. The Blade continues to hold elected officials accountable, report on the issues that matter most to LGBTQ people, and tell the stories that often go uncovered by mainstream media.

“The Blade has been my family for most of my adult life. For 14 years, it has been part of my daily routine, so it’s going to feel very strange waking up and not logging on each morning.”

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