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The Department of Justice said that Ruby Corado was arrested after unexpectedly returning to the United States.
Ruby Corado, the founder of Casa Ruby, a nonprofit that has provided services to homeless LGBTQ+ youth in Washington, D.C., was arrested in Maryland on charges of fraud and money laundering, federal authorities announced Wednesday.
Corado, 53, is accused of misappropriating at least $150,000 from more than $1.3 million in pandemic relief funds intended for the nonprofit. The U.S. Attorney’s Office for the District of Columbia alleges that Corado transferred these emergency relief funds to personal bank accounts in El Salvador and concealed the transactions from the IRS.
Established in 2012, Casa Ruby has been a pivotal organization in the nation’s capital, offering transitional housing and support services to LGBTQ+ youth. Corado was celebrated in the community as a beacon of hope for transgender people and other marginalized individuals. The organization came under scrutiny after Corado allegedly fled to El Salvador in 2022 following revelations of financial irregularities. D.C.’s attorney general had gone after Corado with a civil investigation that resulted in her organization’s bank accounts being frozen after staff and vendors went unpaid.
FBI agents arrested Corado on Tuesday at a hotel in Laurel, Maryland, the Justice Department said.
The charges against Corado include bank fraud, wire fraud, and laundering of monetary instruments. If convicted, bank fraud carries a maximum sentence of 30 years in prison, while wire fraud and money laundering each carry up to 20 years.
Corado’s arrest comes after Casa Ruby ceased operations in July 2022 amid allegations of failing to pay rent and employees, effectively shuttering its transitional housing and leaving numerous LGBTQ+ youth without support.
The case has highlighted the importance of transparency and oversight in managing nonprofit organizations, particularly those serving vulnerable communities.
Corado is being held pending a detention hearing scheduled for Friday.
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