In a shocking turn of events, Ruby Corado, the founder of a prominent Washington, D.C., nonprofit dedicated to serving homeless LGBTQ youth, has been arrested on charges of money laundering and fraud. The arrest came following her return to the United States from El Salvador.
According to the U.S. Attorney’s Office for D.C., Corado stands accused of transferring a substantial sum of emergency relief funds, totaling at least $150,000, intended for Casa Ruby, the nonprofit she founded, to private bank accounts in El Salvador. These funds were allegedly concealed from the IRS, constituting a serious breach of financial integrity.
Corado had previously received over $1.3 million in funding from various federal relief programs, including the paycheck protection program and the economic injury disaster loan program. However, it is alleged that she diverted a significant portion of these funds for personal gain, rather than for the intended purpose of supporting vulnerable LGBTQ youth.
The founder’s actions have had dire consequences for Casa Ruby, which ceased operations in July 2022. The nonprofit failed to meet its financial obligations, including rent payments and employee salaries, and was forced to close its transitional housing program, leaving many LGBTQ individuals without crucial support services.
Corado’s evasion tactics, including selling her home and fleeing to El Salvador upon learning of the investigation, further underscore the severity of the allegations against her. Her arrest by FBI agents at a hotel in Laurel, Maryland, marks a significant development in the case.
The charges against Corado carry substantial penalties, including a maximum sentence of 30 years in prison for bank fraud and up to 20 years each for wire fraud and money laundering. These charges highlight the gravity of the alleged offenses and the potential impact on the LGBTQ community and the broader nonprofit sector.
In light of these developments, questions arise about the oversight and accountability mechanisms governing the distribution of federal relief funds to nonprofits. As the legal proceedings unfold, stakeholders are closely monitoring the case, seeking justice for those affected by Corado’s alleged actions.
Corado has vehemently denied the allegations, suggesting that she is being targeted for her criticism of local government officials. However, the evidence presented by law enforcement authorities paints a troubling picture of financial mismanagement and betrayal of trust.
