The Office of the DC Attorney General on Monday filed an emergency motion in DC Superior Court alleging that Casa Ruby and its longtime executive director Ruby Corado have violated the city’s Nonprofit Corporations Act in connection with its financial dealings.
The court motion, among other things, calls on the court to approve a temporary restraining order freezing all of Casa Ruby’s bank accounts and PayPal accounts into which DC government funds and private donations have been deposited.
The motion also calls on the court to appoint a receiver or another court-supervised official on a provisional basis to help stabilize Casa Ruby’s management and governance “to maintain and control the funds of Casa Ruby.”
The motion states that the restraining order is needed to prevent “Defendant Ruby Corado from making any withdrawals from any of those accounts, removing Corado’s authorization to control any of those accounts, requiring Corado to keep any funds already withdrawn from those accounts in the United States .”
The motion further states, “This preliminary and emergency relief is needed to prevent the ongoing misuse of Casa Ruby’s charitable funds by Corado, who is the only individual authorized to access Casa Ruby’s accounts, despite purporting to resign from the organization in the Fall of 2021 .”
The preliminary relief is warranted, the court motion continues, “because the District is likely to prevail on the merits of its claims given Defendants’ diversion of funds away from their legitimate use by the organization to illegitimate uses.”
It says the illegitimate uses include “the personal benefit of Corado, leaving the organization unable to operate, including it being unable to pay rent on the transitional housing it is designated to provide vulnerable communities and it being unable to pay its employees and vendors for services rendered.”
The motion filed on Monday