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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

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Ruby Corado faces new allegations after her organization collapsed earlier this year. (Washington Blade file photo by Michael Key)

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.

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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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