Casa Ruby closed most of its operations in July. It grossed over $4.1 million in grants and other income on his latest federal tax returns, which showed Corado earned $260,000. But employees say they left without payand at least four landlords have told city agencies that the nonprofit does not pay rent on properties it leases across the city for its low-barrier shelter and transitional housing programs.
Corado did not respond to phone calls or emails from The Post, but she told a Telemundo reporter last week that she was in El Salvador and had done nothing wrong. Although Corado resigned As executive director last fall, employees told city officials and the Post that she retained sole control of the nonprofit’s bank accounts.
“Casa Ruby’s operations suggest clear patterns of gross mismanagement and poor oversight of its programs and finances,” Racine said in a statement. “Instead of fulfilling its important mission of providing transitional housing and support for LGBTQ+ youth, Casa Ruby has diverted hundreds of thousands of dollars in district grants and charitable donations from their purpose. Their executive director appears to have fled the country, withdrawn at least tens of thousands of dollars from nonprofit funds, and failed to pay employees and vendors money rightfully owed to them. Upon hearing of the suspicious circumstances surrounding its collapse, our office immediately began investigating and is using our broad authority over nonprofits in the district to protect the organization’s assets and hold its leaders accountable.
Since 2016, Casa Ruby has received $9.6 million in grants from city agencies to meet the needs of the district’s Latino and LGBTQ+ youth communities. Last fall, the Department of Health and Social Services refused to renew a grant of $839,460 to Casa Ruby to run a low barrier shelter. The shelter, which at the time housed at least 10 young people, closed in September, but the association continued to run other programs, including one for victims of crime and another for asylum seekers. , until last month.
Although the nonprofit listed a board of directors on its federal tax returns, the AG’s office found that between 2012 and 2020 the board “apparently never met and ‘He did not generate any records or minutes to document any action’.
According to the AG office, Casa Ruby board members Jack Harrison-Quintana, Meredith Zoltick, and Hassan Naveed resigned via email on September 29, 2021, February 23, 2022, and April 24, 2022, respectively. . All remaining members of the Board of Directors are inactive.
In addition to asking the court to freeze Casa Ruby’s accounts, the attorney general’s complaint asks the court to appoint a court-supervised official to stabilize and reform the association’s management, and calls for a “fair accounting of records.” for the association’s finances, “because they have had no meaningful oversight for years,” Racine said in his statement. Racine also asked the court to impose a trust or other remedy to regain control of any money Corado may have improperly obtained.
According to the attorney general’s office, Corado’s control over the association’s finances was “almost absolute”. He said she was the only current signatory on the association’s bank accounts and had access to its PayPal account, which processes all donations made to Casa Ruby through its website. Starting at least 2021, the AG said, Corado has withdrawn tens of thousands of dollars from Casa Ruby’s accounts, and it withdrew at least $604 as recently as July 19.
“Even employees with significant responsibilities in Casa Ruby’s business could not spend any of Casa Ruby’s funds without the express permission of Corado,” Racine’s office said.
The AG’s office also said Corado used and continued to spend Casa Ruby’s money without the knowledge or involvement of other officials and without the oversight of the organization’s board of directors for the purpose. non-profit. He said that throughout 2021, Corado used more than $60,000 of Casa Ruby funds to pay bills from a payment card it controlled. The AG’s office discovered that Corado had used Casa Ruby funds to pay for meals and transportation expenses to and within El Salvador.
In court filings, the AG’s office said it was still investigating “the full extent of the abuse” but that “significant nonprofit funds were used to allow Corado to travel, live, and eat in El Salvador, as well as pay charges on a credit card she controlled that were never reviewed or approved by the organization’s board of directors.”
This story will be updated.