District of Columbia
Ruby Corado withdrew $400,000 of Casa Ruby funds: D.C. att’y gen’l
Complaint says she transferred money to banks in El Salvador
The Office of the D.C. Attorney General on Monday filed an amended civil complaint in D.C. Superior Court against Casa Ruby and its founder and former executive director Ruby Corado that includes new allegations, including claims that Corado withdrew more than $400,000 of Casa Ruby funds for unauthorized use in El Salvador.
The 25-page amended complaint adds multiple new allegations to the Attorney General office’s original complaint against Casa Ruby filed on July 29. That complaint, among other things, charged the nonprofit LGBTQ community services organization and Corado with violating the D.C. Nonprofit Corporations Act in connection with its financial dealings.
The amended complaint also follows the approval by D.C. Superior Court Judge Danya Dayson of a request in August by the Attorney General’s office to place Casa Ruby under receivership and to appoint the Wanda Alston Foundation as the receiver. The D.C.-based Alston Foundation provides housing services for homeless LGBTQ youth.
On Oct. 28, the Alston Foundation released its Receiver’s Second Interim Report on its findings related to Casa Ruby’s finances. The report points to some of the same unexplained and unauthorized expenditures and transfers of Casa Ruby’s funds by Corado that are included in the AG office’s amended complaint.
The Alston Foundation had been scheduled to release its Receiver’s Third Interim Report also on Monday, Nov. 28. But Alston Foundation Executive Director June Crenshaw told the Washington Blade the foundation requested an extension of that deadline to give it a chance to review the new allegations in the AG office’s amended complaint.
Among other things, the AG office’s amended complaint adds three new defendants to what legal observers say is the equivalent of a lawsuit by the D.C. government against Corado and Casa Ruby. The new defendants named in the complaint are limited liability companies created and controlled by Corado to purportedly perform services in support of Casa Ruby.
They include a new version of Casa Ruby called Casa Ruby LLC doing business as Moxie Health; Pneuma Behavioral Health LLC; and Tigloballogistics LLC doing business as Casa Ruby Pharmacy.
The amended complaint notes that Corado, who claimed the new companies, especially the pharmacy, were part of Casa Ruby’s mission, never received approval to create the companies from the Casa Ruby board of directors, which the AG’s office has said rarely met and failed to provide any oversight of Corado’s actions.
According to the amended complaint, Corado transferred large sums of money from the original Casa Ruby to these companies and at some point, transferred funds from the new companies to her own personal bank account.
Both the earlier complaint filed in July and the amended complaint allege that Corado transferred as much as $500,000 of Casa Ruby’s funds to create what she said was a new Casa Ruby in El Salvador approved by the Casa Ruby board. But the earlier and amended complaints allege that the board never authorized the El Salvador operation.
Between April 2021 and September 2022, the amended complaint says, Corado transferred over $400,000 from two Casa Ruby related accounts “to accounts she held under her birth name in two El Salvador banks.” It says the Casa Ruby board “never authorized any of these transfers.”
In addition to the financial related allegations, the amended complaint charges Casa Ruby and Corado with violating D.C.’s Wage Payment and Collection Law and the D.C. Minimum Wage Revision Act by failing to pay Casa Ruby employees all the wages they earned for their work several months before Casa Ruby closed its operations in July 2022.
“At various times between July 2021 and July 2022, while Corado was freely supplementing her $260,000 salary with additional funds drawn from Casa Ruby’s bank accounts, many of Casa Ruby’s employees were paid only $15.00 per hour, less than the minimum wage in the District of Columbia as of July 1, 2021,” the amended complaint says. “None of these employees received the full wages they earned,” it says.
One of the former employees told the Washington Blade most of the remaining employees during Casa Ruby’s final months before its shutdown were paid late or not paid at all. Under the two labor related laws the amended complaint has charged Casa Ruby and Corado with violating, an employer could be required to pay the employees any lost or missing wages.
But the Receiver’s Second Interim Report filed in October by the Alston Foundation says among other improper financial dealings, Casa Ruby failed to pay the U.S. Internal Revenue Service payroll taxes withheld from its employees. The AG office’s amended complaint says that as of June of this year, Casa Ruby owed the IRS $127,435 in employment taxes, not including interest and penalties.
The receiver’s report points out that under federal law, employers that owe back taxes to the IRS must pay those claims first. “Thus, after all outstanding payroll taxes have been paid off, there is little chance that there will be anything left for any other debts or obligations like past rent or wages,” the report says.
The amended complaint filed by the AG’s office says a copy of the amended complaint was sent to Corado through an email address, which has been the only known way of reaching Corado. Former Casa Ruby employees have said she had been spending most of her time over the past year or longer in El Salvador. The complaint says that as of October, Corado still had not retained an attorney to represent her and was representing herself in a process known as pro se representation.
The Blade couldn’t immediately reach Corado for comment on the amended complaint through the same email address.
During a virtual court hearing in September, Corado denied any improper or illegal financial practices and blamed the D.C. government for Casa Ruby’s collapse, saying city agencies cut off funding for Casa Ruby without a legitimate reason. However, the D.C. Department of Human Services, which provided much of Casa Ruby’s funding through grants, has said the funding was stopped after Casa Ruby failed to submit financial reports required for all grant recipients that account for how the grant money is spent.
District of Columbia
‘Sandwich guy’ not guilty in assault case
Sean Charles Dunn faced misdemeanor charge
A jury with the U.S. District Court for the District of Columbia on Thursday, Nov. 6, found D.C. resident Sean Charles Dunn not guilty of assault for tossing a hero sandwich into the chest of a U.S. Customs and Border Protection agent at the intersection of 14th and U streets, N.W. at around 11 p.m. on Aug. 10.
Dunn’s attorneys hailed the verdict as a gesture of support for Dunn’s contention that his action, which was captured on video that went viral on social media, was an exercise of his First Amendment right to protest the federal border agent’s participating in President Donald Trump’s deployment of federal troops on D.C. streets.
Friends of Dunn have said that shortly before the sandwich tossing incident took place Dunn had been at the nearby gay nightclub Bunker, which was hosting a Latin dance party called Tropicoqueta. Sabrina Shroff, one of three attorneys representing Dunn at the trial, said during the trial after Dunn left the nightclub he went to the submarine sandwich shop on 14th Street at the corner of U Street, where he saw the border patrol agent and other law enforcement officers standing in front of the shop.
Shroff and others who know Dunn have said he was fearful that the border agent outside the sub shop and immigrant agents might raid the Bunker Latin night event. Bunker’s entrance is on U Street just around the corner from the sub shop where the federal agents were standing.
“I am so happy that justice prevails in spite of everything happening,“ Dunn told reporters outside the courthouse after the verdict while joined by his attorneys. “And that night I believed that I was protecting the rights of immigrants,” he said.
“And let us not forget that the great seal of the United States says, E Pluribus Unum,” he continued. “That means from many, one. Every life matters no matter where you came from, no matter how you got here, no matter how you identify, you have the right to live a life that is free.”
The verdict followed a two-day trial with testimony by just two witnesses, U.S. Customs and Border Protection agent Gregory Lairmore, who identified Dunn as the person who threw the sandwich at his chest, and Metro Transit Police Detective Daina Henry, who told the jury she witnessed Dunn toss the sandwich at Lairmore while shouting obscenities.
Shroff told the jury Dunn was exercising his First Amendment right to protest and that the tossing of the sandwich at Lairmore, who was wearing a bulletproof vest, did not constitute an assault under the federal assault law to which Dunn was charged, among other things, because the federal agent was not injured.
Prosecutors with the Office of the U.S. Attorney for D.C. initially attempted to obtain a grand jury indictment of Dunn on a felony assault charge. But the grand jury refused to hand down an indictment on that charge, court records show. Prosecutors then filed a criminal complaint against Dunn on the misdemeanor charge of assaulting, resisting, or impeding certain officers of the United States.
“Dunn stood within inches of Victim 1,” the criminal complaint states, “pointing his finger in Victim 1’s face, and yelled, Fuck you! You fucking fascists! Why are you here? I don’t want you in my city!”
The complaint continues by stating, “An Instagram video recorded by an observer captured the incident. The video depicts Dunn screaming at V-1 within inches of his face for several seconds before winding his arm back and forcefully throwing a sub-style sandwich at V-1.
Prosecutors repeatedly played the video of the incident for the jurors on video screens in the courtroom.
Dunn, who chose not to testify at his trial, and his attorneys have not disputed the obvious evidence that Dunn threw the sandwich that hit Lairmore in the chest. Lead defense attorney Shroff and co-defense attorneys Julia Gatto and Nicholas Silverman argued that Dunn’s action did not constitute an assault under the legal definition of common law assault in the federal assault statute.
Assistant U.S. Attorney Michael DiLorenzo, the lead prosecutor in the case, strongly disputed that claim, citing various provisions in the law and appeals court rulings that he claimed upheld his and the government’s contention that an “assault” can take place even if a victim is not injured as well as if there was no physical contact between the victim and an alleged assailant, only a threat of physical contact and injury.
The dispute over the intricacies of the assault law and whether Dunn’s action reached the level of an assault under the law dominated the two-day trial, with U.S. District Court Judge Carl J. Nichols, who presided over the trial, weighing in with his own interpretation of the assault statute. Among other things, he said it would be up to the jury to decide whether or not Dunn committed an assault.
Court observers have said in cases like this, a jury could have issued a so-called “nullification” verdict in which they acquit a defendant even though they believe he or she committed the offense in question because they believe the charge is unjust. The other possibility, observers say, is the jury believed the defense was right in claiming a law was not violated.
DiLorenzo and his two co-prosecutors in the case declined to comment in response to requests by reporters following the verdict.
“We really want to thank the jury for having sent back an affirmation that his sentiment is not just tolerated but it is legal, it is welcome,” defense attorney Shroff said in referring to Dunn’s actions. “And we thank them very much for that verdict,” she said.
Dunn thanked his attorneys for providing what he called excellent representation “and for offering all of their services pro bono,” meaning free of charge.
Dunn, an Air Force veteran who later worked as an international affairs specialist at the U.S. Department of Justice, was fired from that job by DOJ officials after his arrest for the sandwich tossing incident.
“I would like to thank family and friends and strangers for all of their support, whether it was emotional, or spiritual, or artistic, or financial,” he told the gathering outside the courthouse. “To the people that opened their hearts and homes to me, I am eternally grateful.”
“As always, we accept a jury’s verdict; that is the system within which we function,” CNN quoted U.S. Attorney for D.C. Jeanine Pirro as saying after the verdict in the Dunn case. “However, law enforcement should never be subjected to assault, no matter how ‘minor,’” Pirro told CNN in a statement.
“Even children know when they are angry, they are not allowed to throw objects at one another,” CNN quoted her as saying.
District of Columbia
Trial begins for man charged with throwing sandwich at federal agent
Jury views video of incident that went viral on social media
Prosecutors showed jurors a video of Sean Charles Dunn throwing a sub sandwich into the chest of a U.S. Customs and Border Protection agent at the bustling intersection of 14th and U streets, N.W. at around 11 p.m. on Aug. 10 of this year on the opening day of Dunn’s trial that has drawn national attention.
According to a knowledgeable source, Dunn threw the sandwich at the agent after shouting obscenities at him and other federal law enforcement officers who were stationed at that location after he was refused admission to the nearby gay bar Bunker for being too intoxicated.
Charging documents and reports by witnesses show that Dunn expressed outrage that the federal officers were stationed there and at other locations in D.C. under orders from President Donald Trump to help curtail crime in the city.
Prosecutors with the Office of the U.S. Attorney for D.C. initially attempted to obtain a grand jury indictment of Dunn on a felony assault charge, but the grand jury refused to hand down an indictment on that charge, court records show. Prosecutors then filed a criminal complaint against Dunn on the misdemeanor charge of assaulting, resisting, or impeding certain officers of the United States.
“Dunn stood within inches of Victim 1,” a criminal complaint states, “pointed his finger in Victim 1’s face, and yelled, Fuck you! You fucking fascists! Why are you here? I don’t want you in my city!”
The complaint adds, “Dunn continued his conduct for several minutes before crossing the street and continuing to yell obscenities at V-1. At approximately 11:06 p.m. Dunn approached V-1 and threw a sandwich at him, striking V-1 in the chest.”
The complaint continues by stating, “An Instagram video recorded by an observer captured the incident. The video depicts Dunn screaming at V-1 within inches of his face for several seconds before winding his arm back and forcefully throwing a sub-style sandwich at V-1.”
At the opening day of testimony at the trial on Tuesday, Nov. 4, V-1, who was identified as Customs and Border Patrol Agent Gregory Lairmore, testified as the first government witness. Also testifying was Metro Transit Police Detective Daina Henry, who said she was present at the scene and saw Dunn throw the sandwich at Lairmore.
The position taken by Dunn’s defense attorneys is outlined in a 24-page memorandum in support of a motion filed on Oct. 15 calling for the dismissal of the case, which was denied by U.S. District Court Judge Carl J. Nichols.
“This prosecution is a blatant abuse of power,” the defense memo states. “The federal government has chosen to bring a criminal case over conduct so minor it would be comical – were it not for the unmistakable retaliatory motive behind it and the resulting risk to Mr. Dunn.”
It adds, “Mr. Dunn tossed a sandwich at a fully armed, heavily protected Customs and Border Protection {CBP} officer. That act alone would never have drawn a federal charge. What did was the political speech that accompanied it.”
The trial was scheduled to resume at 9 a.m. on Wednesday, Nov. 5.
District of Columbia
D.C. mayor announces use of local funds for SNAP food aid
Md., Va. arrange for similar local replacement of federal money
D.C. Mayor Muriel Bowser announced on Oct. 30 that she has arranged for at least $129 million in local D.C funds to be used to support as many as 141,000 D.C. residents in need who depend on the federal food assistance programs known as SNAP and WIC whose funding will be cut off beginning Nov. 1 due to the federal shutdown.
SNAP, which stands for the Supplemental Nutrition Assistance Program, and WIC, the Women, Infants, and Children Program, provide food related services for 10 million or more people in need nationwide.
Maryland Gov. Wes Moore, Virginia Gov. Glenn Youngkin, and Delaware Gov. Matt Meyer also announced similar plans to provide emergency state funds to replace the federal funds cut off beginning Nov. 1 for the two food programs.
Similar to Bowser, Moore and Youngkin said their replacement funds at this time would only last for the month of November. Each said they were hopeful that Congress would end the shutdown before the end of November.
“We know that SNAP and WIC play a critical role in keeping thousands of Washingtonians and millions of Americans put food on the table each month,” Bowser said in a statement. “We were hopeful it wouldn’t come to this – and we will need the federal government to reopen as soon as possible – but for right now, we’re moving forward to ensure we take care of D.C. residents in November,” she said.
The mayor’s statement says about 85,000 D.C. households, consisting of 141,000 individuals, receive SNAP support each month, with an average monthly allocation of $314. It says more than 12,500 city residents in 8,300 households benefit from the WIC program.
A spokesperson for the D.C. Mayor’s Office of LGBTQ Affairs couldn’t immediately be reached to determine whether the city has an estimated count of how many LGBTQ residents receive support from the SNAP and SIC programs.
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