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.ās nonprofit corporation law by failing to āhold regular meetings and/or maintain official records ā thereby exercising no oversight or governance over the organization.ā
The lawsuit also names Casa Ruby founder and former executive director Ruby Corado as a defendant who it says is also responsible for Casa Rubyās downfall.
The Alston Foundationās 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 Coradoās leadership, violated the cityās Nonprofit Corporations Act in connection with its financial dealings, including Coradoās alleged unauthorized withdrawal of funds from Casa Ruby.
In a report it released last year, the Alston Foundation said its own investigation into Casa Rubyās 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 ārestitution, compensatory damages, punitive damages, receivership fees and expenses, court costs, attorneysā fees and expenses, and any other relief the court deems necessary and proper.ā
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 didnāt 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 organizationās board of directors can only be held liable for harming an organization like Casa Ruby if they āintentionally, rather than negligently, inflicted harm on Casa Ruby.ā
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 āboard member intentionally violated a criminal law or that the board member received some amount of money to which they were not entitled.ā 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 judgeās 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 Foundationās 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 āwere deliberately indifferent or āwillfully blindā to the alleged wrongful conduct of the non-profitās 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.ā
The brief adds that if the judgeās dismissal ruling is upheld, it would have an adverse impact on other nonprofit organizations whose board members fail to adequately oversee the organizations.
āIf the Superior Courtās 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,ā it says. āIndeed, such a standard essentially provides non-profit directors with an incentive to engage in a āsee-no-evilā hands off approach to their responsibilities under circumstances in which the Nonprofit Corporations Act expressly contemplates the opposite.ā
Under court rules, the former board members will be given an opportunity through their attorneys to file a response objecting to the Alston Foundationās appeal of the dismissal ruling.
District of Columbia
D.C. LGBTQ community to gather for post-election dialogue
Dec. 12 event to address federal workersā rights, immigration, more
Several leading LGBTQ organizations in D.C. are coming together to make sense of the recent election and to discuss the future of advocacy and resilience as President-elect Donald Trump prepares to take office.
With Republicans in firm control of the federal government after winning majorities in the House and Senate, many are concerned about attacks on the LGBTQ community, including Trumpās pledge to ban trans people from serving in the military. In addition, many LGBTQ federal workers have expressed concerns about being targeted for reassignment or termination, as outlined in Project 2025, a right-wing blueprint for Trumpās second term.
In response, D.C.ās LGBTQ community is coming together for an event on Thursday, Dec. 12, 6:30-8 p.m. at the Eaton Hotel (1201 K. St., N.W.) featuring an array of speakers who will address issues, including: anticipated policy shifts; community resilience strategies; legal rights; immigration advocacy; and federal workersā rights.
The event, titled, āCharting Our Future: LGBTQ+ Advocacy & Resilience in a Changing Landscapeā is free; visit washingtonblade.com/future to RSVP.
The event is being hosted by the Washington Blade and includes community partners: the DC LGBTQ+ Budget Coalition, HME Consulting & Advocacy, Eaton DC, DC LGBTQ+ Community Center, Capital Pride Alliance, and the Mayor’s Office of LGBTQ+ Affairs. Heidi Ellis of the DC LGBTQ+ Budget Coalition will moderate. A list of speakers will be released later this week.
District of Columbia
Casa Ruby receiver files for bankruptcy
Jan. 21 deadline set for creditors, former employees to apply for reimbursement
In a little-noticed development, 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, filed a petition on Aug. 27 of this year to place Casa Ruby in bankruptcy.
The petition, filed in the U.S. Bankruptcy Court for the District of Columbia, says Casa Ruby has estimated liabilities to at least 50 creditors of more than $1 million and estimated assets of between $0 and $50,000.
Nick Harrison, an attorney representing the Wanda Alston Foundation, which provides housing services to homeless LGBTQ youth, said Casa Ruby currently has no known financial assets, including cash.
He said the bankruptcy petitionās estimated assets of up to $50,000 are based on a pending lawsuit that the Alston Foundation filed against eight former Casa Ruby board members and Casa Rubyās founder and former executive director Ruby Corado in December 2022. The lawsuit accuses the board of violating D.C.ās nonprofit corporation law by failing to exercise oversight over Casa Rubyās operations that led to its financial collapse and shutdown in 2022.
The lawsuit calls on the court to require Corado and the former board members to pay ārestitution, compensatory damages, punitive damages, receivership fees and expenses, court costs, attorneysā fees, and expenses, and any other relief the court deems necessary and proper.ā
A D.C. Superior Court judge on May 1, 2023, dismissed the lawsuit filed by the Alston Foundation against all but one of the former Casa Ruby board members but did not dismiss the case against Corado.
The Alston Foundation has appealed the ruling dismissing the lawsuit, and the case is now pending before the D.C. Court of Appeals.
The lawsuit also alleges that the board failed to adequately oversee the actions of Corado, who pleaded guilty in July of this year to a charge of wire fraud as part of a plea bargain deal offered by prosecutors.
The charge to which Corado pleaded guilty in the U.S. District Court for D.C. says she allegedly diverted at least $150,000 āin taxpayer-backed emergency COVID relief fundsā awarded to Casa Ruby to āprivate offshore bank accounts for her personal use,ā according to a statement released by the U.S. Attorneyās office.
Corado, who initially denied the allegations against her, is currently staying with a family member in Rockville, Md., in a home detention arrangement following her arrest by the FBI on March 5 of this year. She is scheduled to be sentenced on Jan. 10.
D.C. Superior Court Judge Danya A. Dayson stated that her decision to dismiss the lawsuit against seven of the eight former board members was based on her interpretation of D.C. law. She said she believes the law holds that members of an organizationās board of directors can only be held liable for harming an organization like Casa Ruby if they āintentionally, rather than negligently, inflicted harm on Casa Ruby.ā
The judge said she did not dismiss the case against one of the board members because the lawsuit presents evidence that the board member received some financial benefits from Corado.
In a legal brief filed with the appeals court, the Alston Foundation attorneys state that evidence shows the Casa Ruby board members āwere deliberately indifferent or āwillfully blindā to the alleged wrongful conduct of the nonprofitās executive director amounting to actual knowledge on their part that inaction would harm the nonprofit, ultimately and forcibly leading to its financial inability to continue operation.ā
The former board members have declined requests for comment on the lawsuit.
Harrison, the attorney representing the Alston Foundation in the bankruptcy filing, said anyone who is owed money by Casa Ruby has until Jan. 21 to file a āproof of claimā form with the bankruptcy court to be eligible to be compensated if funds become available.
At the time of Casa Rubyās shutdown, the organizationās employees were among those who said they were not paid in the months or weeks prior to the shutdown.
Asked what prompted the Alston Foundation to file the bankruptcy petition on behalf of Casa Ruby, Harris said, “Filing the bankruptcy petition ensures that a trustee with the appropriate expertise can wrap up the remaining issues while allowing the Wanda Alston Foundation to stay focused on its core mission.”
U.S. Bankruptcy Court records show that one of the officials in charge of collecting proof of claim forms for those owed money is Mark E. Albert, a court appointed Trustee for the bankruptcy filing. Court records show he can be reached at 202-728-3020.
District of Columbia
A D.C. AIDS story: āI couldnāt have survived without you guysā
Old friends reunite as mystery of Kilbourne Place memorial stones is solved
āRed Reminds Meā
Seven videos reflecting the spectrum of living with HIV
Sunday, Dec. 1, 4-9 p.m.
David Bethuel Jamieson Studio House at Walbridge
3229 Walbridge Place, N.W.
Washington, D.C.
Reserve free admission on Eventbrite
In the tradition of my family, funerals are not somber affairs cloaked in black garb. We call them ācelebrations of lifeā where through our tears we laugh and reminisce about the dead. At the end, we all gather either in the basement of a church or a matriarchās house where over a spread of rich, decadent food, we rejoice in the fact that our dead relative shed the chains of their flesh and transcended to the next phase. With bellies full, the kids run outside and play with each other and the adults would drink and trade stories. The repast is my fondest memories of childhood. It was a time when I could see family members separated by distance and eat collard greens simmered in smoked turkey and mac and cheese so cheesy that it solidified into a brick when cold.
Never would I have imagined that a repast would occur at Don Juanās on the corner of Mt. Pleasant and Lamont. Instead of collard greens and mac and cheese, I dined on cheese pupusas with curtido. This occasion solidified the importance of a chosen family. While none of us were related by blood, we were related through one thread: AIDS. The story of the Kilbourne Memorial Stones is an AIDS story in which through unraveling the lives of Robert Rockershousen, Jakob Efsen, and Charles Winney, we received a glimpse into the impact of AIDS within D.C.ās gay community. A community that is often overshadowed by New York City and San Francisco when the early years of the epidemic are discussed.
When the Blade published my story āUnraveling mystery of the Kilbourne Place memorial stonesā in August of 2023, Charles Winneyās story was still untold. What I did find out about him was through scouring public records but, no one stepped up to eulogize him. My friend, Peter Stebbins, knew of my struggles to locate a source for Charles and motivated me to continue fighting for him. In June of this year, I told Peter that I knew of Charlesās partner, Larry Martin, who lives in Provincetown, Mass. Between the years of 2022 and 2023, I reached out to Larry through multiple means, but I received no response. Peter being a Provincetown regular since the 1980s, was adamant that he knew someone who knew Larry and could get him in contact with me. I cautioned Peter that this might not have been a good idea. I interpreted Larryās silence as not wanting to reopen an old wound.
Undeterred, Peter found a mutual friend on Facebook and reached out to Larry; 48 hours later, a relationship formed between Larry and me. Through phone conversations and in-person interviews, he brought me into the world of Larry & Chuck (Charles). From their beginnings as a young couple in Baltimore through their years on 1747 Kilbourne Place, they built an intricate and intimate web of community that reminded me of the communal affection I received from my family. There was this sense of āthrough thick and thinā that allowed them to stand in the gap for others within their community that were affected by AIDS. Larry told of how he and Chuck used to host dinners and care for those who were dying. They did it because they cared, and it was important to their identity as gay Christians to be of service of others.
In our many conversations, Larry alluded to the identity of who placed the stones. He hinted at the fact that it was a communal effort, and it wasnāt some lone solitary figure. Excitedly, I wanted to immediately put the story out, but he suggested for me to wait until he brought in his two friends, Mark Lambert and John Koran. Mark was Chuck and Larryās roommate on Kilbourne Place. He was one quarter of the āGolden Girls,ā which consisted of Mark, his friend Robbie, Larry, and Chuck. Together, they hosted large parties on the property that included parties for Pride. John was Robertās best friend and roommate. Like Larry, I reached out to John through multiple avenues, but we did not connect.
Within a week, we were sitting at Don Juanās drinking and breaking bread. While it was my intention to keep the group interview as formal as possible, I became enraptured in the camaraderie and nostalgia that permeated the air. Among these men with their graying hair and wrinkles, I again felt like that kid at the repast listening in on the adults. Larry officiated in a manner that was reminiscent of a patriarch. He corralled us all together in a group chat and laid the foundation for us to gather. Although the initial goal was to find out more information about Chuck, that moment laid bare the reality that these men belonged to a fraternity where they were hazed by the devastation of the AIDS epidemic. They are AIDS survivors.
Allowing these men to convene and break bread in fellowship was a way to finally eulogize Chuck and also a way for them to have a repast for Jake and Robert. Their banter and inside jokes brought forth a youthfulness and exuberance that almost moved me to tears on a few occasions. They became the adults in my family who drank their liquor and slapped their knees in laughter as they reminisced about the good olā days. While the men gave their eulogies, it was revealed that Larry, John, and a few others decided to lay down the Kilbourne Memorial Stones. It was decided that now that these men were together, we should walk down to the stones and take photos.
The men stood in front of the stones and on the porch of 1747 Kilbourne Place and they continued to laugh and tell stories while I snapped photos. We eventually parted ways and as I waited on the corner for a car to pass, I turned around and looked at the men for what may be the very last time. They were walking with their arms wrapped around each other like brothers. The scene reminded me of a discussion that was had at the dinner table less than an hour before. I asked the men if they believed their lives as gay men would be different during the epidemic if they didnāt have the support of each other. They all agreed in unison that their friendship was instrumental in their survival and Larry said among the nodding of heads, āI couldnāt have survived without you guys.ā
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