Ruby Corado (Washington Blade photo by Ernesto Valle)
A federal judge on Jan. 13 sentenced Ruby Corado, the founder and former executive director of the now closed D.C. LGBTQ community services organization Casa Ruby, to 33 months of incarceration for a charge of wire fraud to which she pleaded guilty in July 2024.
U.S. District Court Judge Trevor M. McFadden handed down the sentence that had been requested by prosecutors with the Office of the U.S. Attorney for the District of Columbia after Corado’s sentencing had been postponed six times for various reasons.
The judge also sentenced her to 24 months of supervised release upon her completion of incarceration.
In addition to the sentence of incarceration, McFadden agreed to a request by prosecutors to hold Corado responsible for “restitution” and “forfeiture” in the amount of $956,215 that prosecutors have said she illegally misappropriated from federal loans obtained by Casa Ruby.
The charge to which she pleaded guilty is based on allegations that she diverted at least $180,000 “in taxpayer backed emergency COVID relief funds to private offshore bank accounts,” according to court documents.
Court records show FBI agents arrested Corado on March 5, 2024, at a hotel in Laurel, Md., shortly after she returned to the U.S. from El Salvador, where authorities say she moved in 2022. Prosecutors have said in charging documents that she allegedly fled to El Salvador, where she was born, after “financial irregularities at Casa Ruby became public,” and the LGBTQ organization ceased operating.
Shortly after her arrest, another judge agreed to release Corado into the custody of her niece in Rockville, Md., under a home detention order. But at an Oct. 14, 2025, court hearing at which the sentencing was postponed after Corado’s court appointed attorney withdrew from the case, McFadden ordered Corado to be held in jail until the time of her once again rescheduled sentencing.
Her attorney at the time, Elizabeth Mullin, stated in a court motion that her reason for withdrawing from the case was an “irreconcilable breakdown in the attorney-client relationship.”
Corado’s newly retained attorney, Pleasant Brodnax, filed a 25-page defense Memorandum in Aid of Sentencing on Jan. 6, calling for the judge to sentence Corado only to the time she had already served in detention since October.
Among other things, Brodnax’s defense memorandum disputes the claim by prosecutors that Corado improperly diverted as much as $956,215 from federally backed loans to Casa Ruby, saying the total amount Corado diverted was $200,000. Her memo also states that Corado diverted the funds to a bank account in El Salvador for the purpose of opening a Casa Ruby facility there, not to be used for her personally.
“Ms. Corado has accepted responsibility for transferring a portion of the loan disbursements into another account she operated and ultimately transferring a portion of the loan disbursements to an account in El Salvador,” the memo continues.
“Her purpose in transferring funds to El Salvador was to fund Casa Ruby programs in El Salvador,” it says, adding, “Of course, she acknowledges that the terms of the loan agreement did not permit her to transfer the funds to El Salvador for any purpose.”
In his own 16-page sentencing recommendation memo, Assistant U.S. Attorney John Borchert, the lead prosecutor in the case, said Corado’s action amounted at the least to fraud.
“The defendant and Casa Ruby received no less than $1.2 million in taxpayer backed funds during the COVID-19 global health crisis,” he memo states. “But rather than use those funds to support Casa Ruby’s mission as the defendant promised, the defendant further contributed to its demise by unlawfully transferring no less than $180,000 of these federal emergency relief funds into her own private offshore bank accounts,” it says.
“Then, when media reports suggested the defendant would be prosecuted for squandering Casa Ruby’s government funding, she sold her home and fled the country,” the memo states. “Meanwhile, the people who she had promised to pay with taxpayer-backed funds – her employees, landlord, and vendors – were left behind flat broke.”
A spokesperson for the U.S. Attorney’s office and Corado’s attorney didn’t immediately respond to a request from the Washington Blade for comment on the judge’s sentence.
“Ms. Corado accepts full responsibility for her actions in this case,” defense attorney Brodnax says in her sentencing memo. “She acknowledges the false statements made in the loan applications and that she used some of the money outside the United States,” it says.
“However, the money was still utilized for the same purpose and intention as the funds used in the United States, to assist the LGBTQ community,” it states. “Ms. Corado did not use the money to buy lavish goods or fund a lavish lifestyle.”
Brodnax also states in her memo that as a transgender woman, Corado could face abuse and danger in a correctional facility where she may be sent if sentenced to incarceration.
“Ruby Corado committed a crime, she is now paying the price,” said D.C. LGBTQ rights advocate Peter Rosenstein. “While it is sad in many ways, we must remember she hurt the transgender community with what she did, and in many ways they all paid for her crime.”
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