Assuming control of an organization under receivership is never a simple task. In the best of circumstances, it is an intricate process fraught with legal, financial, and operational challenges. The receiver must untangle the threads of a distressed entity, restore order from chaos, and protect the interests of all stakeholders. But this was no ordinary receivership — Casa Ruby’s collapse left behind far more than financial disarray; it left a community in crisis.
When the Wanda Alston Foundation, a smaller nonprofit with a focus on LGBTQ youth, was appointed to take over Casa Ruby, the enormity of the challenge became clear. Casa Ruby, once a sanctuary for the transgender and Latino community in DC, had closed its doors abruptly, leaving the people it served stranded. The very space where it had provided shelter, safety, and support had been abandoned and looted. The office was a shell of its former self — ransacked, with furniture overturned, files strewn across the floor like fallen leaves, and crucial records missing or destroyed. In this disheveled scene, where a once-vibrant center of hope had devolved into chaos, there was little left to ascertain the state of the organization’s business operations.
With no reliable records, understanding the full scope of Casa Ruby’s financial mismanagement became an even more arduous task. It wasn’t just the unpaid rent or the salaries left in arrears. The Executive Director had fled the country, taking with them much of the charity’s funds, leaving behind only questions and devastation. What remained was a patchwork of incomplete financial histories and abandoned responsibilities, from unpaid landlords to disillusioned employees.
For the Wanda Alston Foundation, this was a task far greater than it had ever undertaken before. As a smaller organization focused on LGBTQ youth, it was stepping into a crisis that spanned across different communities — Casa Ruby had served transgender individuals and Latinos, a population outside of Wanda Alston’s traditional mission. Yet, the foundation understood that the future of these vulnerable individuals depended on swift and decisive action. This receivership was not just about navigating financial complexities; it was about rebuilding trust, stabilizing lives, and ensuring that a critical part of the LGBTQ community would not be abandoned in its hour of greatest need.
At the heart of Casa Ruby’s story was its charismatic and passionate founder, Ruby Corado. A trans woman from El Salvador, Corado was no stranger to hardship. Her life story — a journey from homelessness and violence to becoming a celebrated activist — made her an icon within Washington, D.C.’s LGBTQ community. Corado’s personal experience gave her an unparalleled connection to the people Casa Ruby served: trans individuals, sex workers, asylum seekers, and others who had been rejected by their families and society. For many, she was a symbol of hope and resilience, a living testament to the possibility of overcoming adversity.
Corado’s influence was profound. Her magnetic personality and relentless advocacy earned her the trust and admiration of many, including high-profile political figures and members of the nonprofit sector. Her work extended beyond providing essential services; she actively lobbied for policy changes, helped draft legislation, and testified before the D.C. Council. She was a visible presence at Pride events and a sought-after voice on trans issues. In many ways, Corado had become synonymous with Casa Ruby itself, embodying its mission to create a safe haven for the most vulnerable.
Casa Ruby’s star power extended beyond its founder. The nonprofit’s board of directors included an impressive roster of professionals from across the country. Among them were influential figures like the Executive Director of New York City’s Office for the Prevention of Hate Crimes, who brought critical insights into combating violence against marginalized communities, and the Director of the Grindr for Equality Initiative, who had deep experience in mobilizing LGBTQ resources globally. The board also included local attorneys, business owners, and healthcare professionals — individuals whose collective expertise and networks helped propel Casa Ruby’s rapid growth and solidify its status as an indispensable resource for the LGBTQ community in D.C.
Yet, as impressive as its leadership appeared on paper, the reality was far more complicated. While Corado’s vision had initially drawn these figures to the board, Casa Ruby’s operational troubles began to mount. Behind the scenes, the board struggled to provide adequate oversight. Reports emerged that meetings were infrequent, notes were not properly recorded, and critical governance responsibilities were often overlooked. This lack of accountability would later prove to be a key factor in the organization’s eventual unraveling.
In a city that celebrated its progressive values, Casa Ruby stood as a symbol of those values in action. But even symbols can falter, and the weight of managing such an ambitious and rapidly expanding organization began to take its toll. The combination of Corado’s unchecked authority and the Board’s inability to intervene when necessary left Casa Ruby vulnerable. What had started as a refuge for the most marginalized had become a cautionary tale, one that tested the community’s faith in those they had once trusted to lead.
When the Wanda Alston Foundation assumed its role as receiver in August 2022, Executive Director June Crenshaw took immediate steps to gain control over Casa Ruby’s two leased properties in Dupont Circle. What she found was far from the operational chaos one might expect — it was a scene of devastation. The offices had been abandoned, ransacked, and looted, with files and records scattered haphazardly across floors and desks. These spaces, once meant to serve as safe havens for vulnerable members of the LGBTQ community, had become symbols of neglect. To make matters worse, Casa Ruby had not paid rent for months, and eviction proceedings were already underway, leaving little time to act.
Nick Harrison, representing the receiver, immediately sought a stay in the eviction proceedings, giving the team time to address the overwhelming disarray. It wasn’t just about halting the legal process; it was about securing what remained of the organization’s scattered records and piecing together a semblance of order. Harrison worked closely with local LGBTQ community volunteers, who gathered to help sort through the mess, collecting files, and attempting to salvage vital information. Amid the wreckage, they uncovered months of undelivered mail for Casa Ruby’s clients, which also had to be sorted and distributed to ensure no one fell through the cracks in the aftermath of the nonprofit’s collapse.
Casa Ruby’s collapse left a gaping hole in the fabric of the LGBTQ community in Washington, D.C. The organization had been a lifeline for the transgender and Latino populations it served, providing housing, support services, and a sense of belonging. In the wake of its closure, those services suddenly disappeared. Recognizing the urgency of the situation, Harrison and Crenshaw convened a roundtable of other local LGBTQ nonprofit organizations. Their goal was clear: to rally the community and ensure that Casa Ruby’s former clients wouldn’t be left stranded.
This gathering of nonprofit leaders and activists wasn’t just about filling the gap; it was about restoring hope to a community that had been shaken. Together, they strategized ways to provide interim support for Casa Ruby’s displaced clients, from housing to social services, while also addressing the broader fallout from the scandal. The roundtable became a symbol of resilience — a community coming together to take care of its own, even in the absence of one of its largest institutions.
The chaos of Casa Ruby’s abandoned offices presented not just a logistical challenge, but a legal one. With no access to the organization’s accounts and no secure place to store the files and records, Harrison coordinated with the DC Attorney General’s Office to take custody of the documents. Together, they enlisted a contractor to scan and electronically store the records, ensuring compliance with the organization’s legal record retention requirements. It was a meticulous and painstaking process, but essential to protecting both the former clients and the receiver from potential liability.
Amidst the turmoil, the case was drawing national attention, and the pressure mounted. Harrison advised Crenshaw and the Wanda Alston Foundation on how to handle the growing media scrutiny. They walked through the premises with federal agents who had requested access to the client mail, but Crenshaw refused, safeguarding the privacy of vulnerable individuals, including sex workers and immigrants. Protecting the dignity and privacy of Casa Ruby’s former clients became a paramount concern as the records were cleared out and the premises were eventually returned to the landlords.
As Harrison dug deeper into Casa Ruby’s financial records, the extent of the mismanagement became shockingly clear. Corado had maintained no separation between her personal expenses and those of the organization. Large cash withdrawals, unauthorized pay raises, and bonuses for herself without board approval painted a picture of rampant abuse. At one point, Corado had walked out of a bank with $100,000 in cash, only to return days later for another $100,000. Even after fleeing to El Salvador, she continued draining the organization’s accounts, making maximum cash withdrawals from ATMs across the country.
The deeper Harrison looked, the more egregious the mismanagement appeared. Casa Ruby hadn’t collapsed because of the loss of a grant; it had been teetering on the brink for years due to Corado’s financial recklessness. The accounting firm had repeatedly raised concerns, leaving a trail of warnings, but the Board of Directors — comprised of sophisticated business leaders, attorneys, and nonprofit professionals — had turned a blind eye. Their failure to act in the face of such glaring red flags became a central issue in the legal strategy going forward.
With evidence of the board’s willful blindness in hand, Harrison advised the receiver to file third party claims against Casa Ruby’s board of directors, arguing that their failure to provide oversight amounted to intentional harm. Although the DC Superior Court dismissed the third party claims, stating that board members could only be held liable if they personally benefited or intentionally harmed the organization, Harrison and the receiver appealed the decision. They argued that the board’s inaction, despite numerous warnings and indicators, amounted to willful blindness, a legal stance that could redefine board accountability in nonprofit governance.
As the legal battle unfolded, Ruby Corado unexpectedly returned to the United States in March of 2024 and was promptly arrested on charges of wire fraud and embezzlement. With Casa Ruby’s future hanging in the balance, Harrison advised the receiver to file for Chapter 7 bankruptcy. This would relieve the receiver of any lingering liabilities and allow someone to pursue justice on behalf of the employees and creditors. In August of 2024, the DC Superior Court approved the motion, closing one chapter of Casa Ruby’s story, while leaving the door open for further legal action to hold those responsible accountable.
In the face of unprecedented challenges, the work undertaken by the Wanda Alston Foundation, with the guidance of its counsel, Nick Harrison, achieved a profound and favorable outcome — not just for the foundation itself, but for the broader LGBTQ community. When Casa Ruby collapsed, it could have left a permanent scar on those it once served. Instead, the community rallied together. Local LGBTQ organizations stepped up, volunteering time and resources to help preserve what remained of Casa Ruby’s legacy and to fill the void left in its wake. Through collective action, what might have been a story of abandonment became one of resilience and solidarity.
One of the most critical victories was securing the privacy and dignity of Casa Ruby’s former clients and employees. The chaos that had engulfed the organization’s properties could have easily led to sensitive personal information being lost or compromised. However, through careful organization, Harrison and the receiver protected the community’s most vulnerable by recovering months’ worth of client mail and safeguarding it from unwarranted intrusion. Federal agents, seeking access to the mail, were turned away to ensure that the private correspondence of trans individuals, sex workers, and immigrants remained confidential. In an age where privacy is often violated, this was a crucial stand to protect those who needed it most.
Beyond the immediate need to secure records and property, the investigation into Casa Ruby’s financial mismanagement exposed a web of unchecked abuses. Harrison’s meticulous review of the organization’s accounts revealed the extent to which Ruby Corado had blurred the lines between personal and nonprofit funds, as well as the shocking negligence of Casa Ruby’s board of directors. This was not a case of simple oversight; it was a dereliction of duty. For years, the board had ignored clear signs of misconduct, failing to intervene even as employees went unpaid and landlords pursued legal action. The extent of this willful blindness laid bare the systemic failure that had allowed Casa Ruby’s collapse.
Perhaps the most significant success was the ability to extricate the Wanda Alston Foundation from the mess without exposing it to liability. From the beginning, the foundation had stepped into an impossible situation. Yet, thanks to Harrison’s legal counsel and strategy, the foundation was able to navigate the complex legal and financial landscape without taking on the burden of Casa Ruby’s failings. By filing for Chapter 7 bankruptcy on behalf of Casa Ruby, the foundation ensured that the responsibility for holding the former board accountable — and for pursuing relief for employees and creditors — was passed on to the bankruptcy trustee. In doing so, the foundation was free to continue its mission, focused on serving LGBTQ youth without being weighed down by the past.
Ultimately, this receivership wasn’t just about salvaging what was left of Casa Ruby; it was about restoring faith in the community and the systems that support it. The actions taken under Harrison’s guidance helped protect clients, secure records, and reveal the truth about what went wrong, all while allowing the Wanda Alston Foundation to continue its vital work. What could have been a tragedy for D.C.’s LGBTQ community became a story of recovery, accountability, and hope for the future.