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A D.C. Superior Court judge on Friday, Aug. 12, appointed the Wanda Alston Foundation as the city’s receiver for the LGBTQ community services center Casa Ruby in a role in which the Alston Foundation will assume full control over Casa Ruby’s operations and finances.
Judge Danya A. Dayson stated in an order she issued at 2:27 p.m. on Friday that she appointed the Alston Foundation for the receivership role at the recommendation of the Office of the D.C. Attorney General, which asked the judge to place Casa Ruby in receivership in a court motion filed on Aug. 3.
Founded in 2008, the Wanda Alston Foundation provides housing and support services for D.C. homeless and at-risk LGBTQ youth ages 18 to 24 and advocates for expanded city services for LGBTQ youth, according to a statement on its website.
During a virtual court hearing on Thursday, Aug. 11, Dayson approved the AG office’s request to place Casa Ruby under receivership. During the hearing, Adam Gitlin, chief of the AG office’s Public Integrity Section, announced that the AG office had two organizations under consideration for the Casa Ruby receiver – the Alston Foundation of D.C. and the Baltimore-based LGBTQ services organization Safe Haven, which has announced it planned to open a facility in D.C.
Gitlin asked the judge if the AG’s office could have one more day to make a final decision on which of the two groups should be named as the Casa Ruby receiver, and Dayson granted his request.
Among those who spoke at the Aug. 11 hearing was June Crenshaw, the Wanda Alston Foundation’s executive director. Crenshaw told the judge her organization has long supported the mission of Casa Ruby and it was prepared to do all it could to continue that mission in its role as receiver.
In a seven-page order issued on Aug. 12 approving the AG’s recommendation that the Alston Foundation be appointed as receiver, Dayson restated her earlier findings that the AG’s office provided sufficient evidence that a receivership was needed. Among other things, she pointed to the AG office’s allegations that Casa Ruby and its founder and former executive director Ruby Corado violated the District’s Nonprofit Corporations Act.
“The District alleges in its petition that Defendant violated the Act by failing to maintain a lawfully constituted Board of Directors, failing to maintain control and oversight of the Corporation; permitting Ruby Corado, the executive director, to have exclusive access to bank and PayPal accounts held in the name of, or created to benefit, Casa Ruby; and permitting Corado to expend hundreds of thousands of dollars of nonprofit funds without Board oversight and for unknown reason,” Dayson stated in her order.
“Accordingly, it is on this 12th day of August 2022 hereby ORDERED that the District’s motion for appointment of a receiver is GRANTED, and it is FURTHER ORDERED that until further order of this court, the Wanda Alston Foundation, Inc., 1701 Rhode Island Avenue, N.W., 2nd Floor, Washington, D.C. 20036 (the “Receiver”), is hereby appointed as Receiver,” Dayson declared.
Dayson stated in her Aug. 12 order that she has “hereby lifted” her Aug. 3 order granting the AG office’s request that Casa Ruby’s bank accounts and all financial assets be frozen. The Aug. 12 order states that the receiver will now have full control over the bank accounts and Casa Ruby assets.
But the judge adds in her latest order, “Notwithstanding the lifting of the August 3, 2022, freezing Order, Ruby Corado shall not regain access to the affected accounts.”
In addition, Dayson “further” states in her Aug. 12 order that Casa Ruby’s “trustees, directors, officers, managers, or other agents are hereby suspended and the power of any directors or managers are hereby suspended. Such persons and entities shall have no authority with respect to Casa Ruby’s operations or assets, except to the extent as may hereafter be granted by the Receiver.”
The order concludes by directing the receiver to prepare a written report to the court by Sept. 13, 2022, on these issues:
• Assessment of the state of Casa Ruby’s assets and liabilities
• Identification of potential D.C. grant funds that could still be accessed if Casa Ruby met the grant requirements and how Casa Ruby could meet those requirements
• Determine whether Casa Ruby can pay outstanding financial obligations, including but not limited to employees, landlords, and vendors
• A recommendation regarding whether Casa Ruby’s Board should be reconstituted, and it should resume providing services, or instead whether Casa Ruby should be dissolved in an orderly manner pursuant to D.C. Code.
Corado also spoke at the Aug. 11 virtual hearing through a telephone hookup. Among other things, she said she does not oppose the appointment of a receiver.
But Corado disputed the AG office’s allegations against her and Casa Ruby, claiming the group’s financial problems that resulted in its shutdown of most Casa Ruby programs were caused by the D.C. government’s decision to discontinue many but not all city grants providing funding for Casa Ruby.
In its court filings, the AG’s office has disputed Corado’s claims, saying the city grant funds for many of Casa Ruby’s programs were suspended or discontinued because Casa Ruby failed to comply with the grant requirements that all city grantees are obligated to comply with.
“The mission of the Wanda Alston Foundation is to eradicate homelessness and poverty for LGBTQ youth between ages 18 and 24, the group states on its website. The statement adds that the Alston Foundation seeks to accomplish that mission by advocating for LGBTQ youth by “providing programs including housing, life skills training, case management services, linkages to medical care and mental health care and other support services, support in staying and returning to school, and employment support.”