Previously celebrated transgender activist sentenced to federal prison for D.C. nonprofit fraud

Ruby Jade Corado’s name was once synonymous with hope in Washington, D.C.’s LGBTQ+ community — a Salvadoran immigrant whose nonprofit, Casa Ruby, became a refuge for homeless and transgender youth. On Tuesday, that legacy was dramatically overshadowed by a federal judge’s ruling that will send her to prison for nearly three years for defrauding the very communities she set out to serve.

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A U.S. District Court judge sentenced Corado, 56, to 33 months in federal prison and ordered her to pay $956,215 in restitution for wire fraud tied to pandemic relief funds awarded to Casa Ruby. The restitution matches the full amount of federal funds the organization received, funds prosecutors say were obtained under false pretenses and, in part, funneled to private offshore bank accounts.

Related: Ruby Corado, founder of LGBTQ+ nonprofit Casa Ruby, pleads guilty to wire fraud

Related: Federal judge grants Casa Ruby founder Ruby Corado pre-trial release from D.C. jail

Prosecutors said Corado used funds from the Paycheck Protection Program and Economic Injury Disaster Loan program, designed to help nonprofits maintain operations through the COVID-19 pandemic, to divert at least $150,000 abroad while Casa Ruby collapsed under financial strain. The nonprofit shuttered in 2022 after failing to pay rent, closing transitional housing programs, and leaving many LGBTQ+ clients without support. Corado had fled to El Salvador as the organization entered crisis and was arrested in March 2024 after returning to the United States.

Related: Judge delays Ruby Corado’s sentencing but orders U.S. Marshals to take her into custody

Related: Transgender D.C. nonprofit founder Ruby Corado fears Trump-era prison ahead of sentencing hearing

In the lead-up to her sentencing, Corado’s defense painted a portrait of an activist overwhelmed by the complexities of running a multicultural service organization amid political and financial pressures. Attorneys argued that, under federal sentencing guidelines, her advisory range, based on a lower loss calculation, could have been 15 to 21 months, and they emphasized concern for her safety in prison as a transgender woman, particularly under a Trump Justice Department they described as hostile to transgender people.

Corado’s supporters warned that incarceration under the current administration could pose heightened risks for her well-being.

But Judge Trevor N. McFadden sided with prosecutors, underscoring that public trust in the stewardship of taxpayer-backed funds must be upheld. He also ordered two years of supervised release following incarceration and initiated immigration enforcement proceedings that could lead to Corado’s deportation.