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Ruby Corado, founder of Washington, D.C. LGBTQ+ nonprofit Casa Ruby
The transgender former leader of the D.C. LGBTQ+ nonprofit Casa Ruby, who pleaded guilty to fraud, asked to replace her lawyers.
A federal judge in Washington, D.C., on Tuesday granted Ruby Corado’s request to delay her sentencing so she can find new legal counsel, but ordered that she be taken into custody by U.S. Marshals while she does so. The ruling marks a sharp turn for the once-celebrated founder of Casa Ruby, a nonprofit that for years served as a lifeline for LGBTQ+ youth and unhoused people in the nation’s capital.
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Corado, a transgender immigrant from El Salvador, had been under house arrest since pleading guilty last year to a federal wire fraud charge. She admitted to misusing government pandemic relief funds intended for Casa Ruby, which provided housing, job placement, and emergency services to LGBTQ+ people.
Related: Founder of D.C. LGBTQ+ nonprofit Casa Ruby arrested in Maryland after fleeing to El Salvador
On Tuesday, she told the court she wanted to dismiss her attorney and retain new representation before sentencing. The judge granted the request but revoked her release, citing the seriousness of the case and her previous flight from the United States, D.C. CBS affiliate WUSA reports. Her next hearing is scheduled for December 15 at 10 a.m.
Related: LGBTQ+ nonprofit founder Ruby Corado guilty of wire fraud
Federal prosecutors are seeking a sentence of 33 months — nearly three years — in prison, along with restitution of roughly $956,000 to the U.S. government. In a sentencing memorandum filed October 8, Assistant U.S. Attorney John W. Borchert argued that Corado “betrayed the trust of the donors who supported her, the District of Columbia, and the federal government that funded her.” The government contends that she “cheated the taxpayers out of at least $950,000 in assistance” and “absconded to El Salvador with at least $180,000 of the taxpayers’ loan proceeds.”
Related: Founder of DC LGBTQ+ nonprofit Casa Ruby arrested by FBI
The memorandum details how Corado obtained two federal Paycheck Protection Program loans totaling about $780,000 and two Economic Injury Disaster Loans totaling $500,000 during the height of the COVID-19 pandemic. Prosecutors say she moved more than $180,000 into private bank accounts she controlled in El Salvador, violating the loan terms and defrauding the Small Business Administration. The filing also notes that Casa Ruby ceased operations in July 2022 after failing to pay staff and rent, leaving vulnerable clients without support.
“Corado’s conduct was dishonest and disgusting,” prosecutors wrote. “At a time when millions of Americans faced financial insecurity from a global pandemic … the defendant saw an opportunity to cheat the taxpayers.” They said her actions “included other crimes: money laundering, bank fraud, and tax offenses,” though she was charged only with wire fraud as part of a plea agreement.
Related: Scandal Engulfs D.C. LGBTQ+ Nonprofit, Founder Vanishes
Once one of Washington’s most visible advocates for LGBTQ+ youth, Corado had built Casa Ruby into a haven for queer and trans people, especially immigrants and people of color, who often found themselves on the margins of traditional shelters. Her fall from grace and the organization’s collapse reverberated across the region’s queer community.
Corado told WUSA that she was “sorry” for how her actions affected those she once served. But prosecutors maintain that she has not repaid any of the money and “has no intention of repatriating” funds still held in El Salvador.
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