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Oral arguments held in Casa Ruby civil suit appeals case

Alston Foundation urges judges to overturn dismissal of ‘negligence’ lawsuit

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Ruby Corado pleaded guilty in to a single charge of wire fraud. (Washington Blade file photo by Ernesto Valle)

A three-judge panel of the D.C. Court of Appeals heard oral arguments May 7 on whether a 2023 decision by a D.C. Superior Court judge dismissing a lawsuit against seven of the eight former board members of the now-defunct Casa Ruby LGBTQ community services center should be overturned.

The Wanda Alston Foundation, an LGBTQ youth housing services group that assumed control over the operations of Casa Ruby in August 2022 under a court appointed receivership role, filed its lawsuit against the former board members in December 2022 under the Casa Ruby name.

It accuses them of violating D.C.’s nonprofit corporations’ law by failing to “hold regular meetings/or maintain official records – thereby exercising no oversight or governance over the organization.” 

Among other things, the lawsuit said the former board members failed to take steps to prevent Casa Ruby’s founder and former executive director, Ruby Corado, from embezzling large sums of Casa Ruby funds for personal use.

Corado, who was arrested in March 2024 on multiple embezzlement related charges, pleaded guilty in July 2024 to a single charge of wire fraud under a plea agreement with prosecutors. She is scheduled to be sentenced on July 29, 2025.

The lawsuit called 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 May 2023, at the request of defense attorneys, D.C. Superior Court Judge Danya A. Dayson dismissed the lawsuit against seven of the eight former board members but did not dismiss the case against Corado and one of the board members who allegedly received improper financial benefits from Corado.

Dayson stated in her dismissal decision that it was based on her interpretation of a D.C. law that 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.”

According to Dayson, 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.” She states in her decision that the Alston Foundation lawsuit did not provide sufficient evidence that the seven board members committed those types of violations.

Attorneys for the Alston Foundation disputed Dayson’s interpretation of the law in their initial legal brief filed before the D.C. Court of Appeals in February 2024. Among other things, the brief argued that the Alston Foundation’s Third Interim Report in its role as Casa Ruby receiver provides sufficient evidence that the former board members are legally liable for harming Casa Ruby.

That and follow-up briefs and their oral arguments at the May 7, 2025, hearing state that the appeals court can find that the former board members “were deliberately indifferent’ or ‘willfully blind’ to the alleged wrongful conduct of the nonprofit’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.”

A follow-up brief filed by Alston Foundation attorney Theodore Howard argues that the former board members violated Casa Ruby’s by-laws by conducting only one board meeting in six years.

According to the brief, that “allowed Ms. Corado to maintain complete authority over the organization, including by allowing her to unilaterally appoint new Board members” and allowed her “to maintain sole control over Casa Ruby’s bank and financial accounts, even after Ms. Corado cut off access to those accounts to anyone but herself.”

An opposing brief filed by attorney Marlin Grifith, who is representing former board member Miguel Rivera, states that the decision dismissing the lawsuit correctly interpreted the law pertaining to nonprofit corporations.

“The Superior Court did not err…,” the brief states, adding “there are no facts alleged that support a conclusion of reasonable inference that the individual board members acted with actual knowledge that their inaction would cause harm to the organization.”

Howard, the attorney representing the Alston Foundation in its role as Casa Ruby receiver, said the attorneys on both sides of the case are now waiting for the three-judge appeals court panel to issue their decision. 

If they rule in favor of Casa Ruby/Alston Foundation, the case will be sent back to the Superior Court for further proceedings on the lawsuit, Howard said. He said negotiations would likely begin for a possible out-of-court settlement.

If the appeals court rules in favor of the former board members by finding they did not intentionally and knowingly inflict harm to Casa Ruby, “then the case, at least as between Casa Ruby [via the Alston Foundation] and the former board of directors, will be over,” Howard said.

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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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