Casa Ruby's future to be assessed by outside manager
D.C. attorney general seeks to freeze Ruby Corado's bank accounts
D.C. Attorney General Karl Racine has filed a motion to freeze all financial accounts associated with Casa Ruby, the D.C.-based LGBTQ nonprofit that has provided health, immigration, housing, and other assistance for D.C.'s most vulnerable for nearly a decade.
WASHINGTON - Casa Ruby's founder was in court Thursday as attorneys deliberated over potential suitors to help revitalize the D.C.-based LGBTQ nonprofit.
According to court documents, Attorney General Karl Racine's request to appoint a temporary receiver to help stabilize and reform the organization's operations was granted.
The person who is selected to serve as the receiver will be tasked with evaluating the financial condition of Casa Ruby and assessing whether there is a viable path forward.
Corado requested additional time to obtain counsel.
READ MORE: Casa Ruby closes DC shelters, raises financial concerns
Following an investigation by The Washington Post which revealed that Casa Ruby had stopped providing critical services, Corado reportedly went missing in action. The outlet reported that she appeared in court Thursday via phone and spoke freely about the matter.
The Office of the Attorney General previously stated that D.C. government has given Casa Ruby more than $9.6 million over the years from both the mayor's office and D.C.'s Department of Human Services (DHS). But DHS decided to withdraw its over $800,000 grant late last year, leading Corado to set up a GoFundMe.
According to Casa Ruby's 2020 federal tax filing, the organization had over $4 million in total revenue, and Corado took home a $260,000 salary. Court records also reveal that Casa Ruby is facing at least three separate disputes over unpaid rent.
By Friday, the city has to submit the name of the receiver they have selected. A report from that person has to be sent in by September 13, and a status Hearing is scheduled for September 29.