In a shocking development, Ruby Corado, the founder of Casa Ruby, Inc., a Washington, D.C. non-profit that provided support to homeless LGBTQ youths, has been arrested for allegedly embezzling $150,000 in taxpayer-backed pandemic relief funds. Corado was apprehended by FBI agents at a hotel in Laurel, Maryland, on Tuesday after unexpectedly returning to the United States.

This arrest comes two years after Corado fled to El Salvador amidst growing concerns about the organization's financial practices. At that time, the non-profit had to close its transitional housing facilities, left its employees unpaid, and faced eviction from multiple properties due to failure in paying rent. Casa Ruby effectively ceased operations in July 2022.

Appearing in U.S. District Court on Wednesday, Corado faced charges of defrauding the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs, as well as money laundering. As per the allegations, Corado diverted at least $150,000 of the $1.3 million in taxpayer-backed emergency relief funds, meant for Casa Ruby, to private bank accounts in El Salvador for personal use, deliberately concealed from the IRS.

Prosecutors have brought several charges against Corado, including bank fraud, wire fraud, laundering of monetary instruments, monetary transactions of criminally derived proceeds, and failure to report a foreign bank account. Corado is currently in detention and awaits a hearing on Friday.

Casa Ruby, founded by Corado in 2012 within a Latino LGBT community center in Columbia Heights, provided vital services such as a 50-bed emergency housing program across seven locations and a drop-in center. The organization also maintained a satellite office in El Salvador.

By 2019, Casa Ruby had achieved impressive growth, with nearly $3.5 million in annual revenue. In 2020, it reported 127 employees and over $4.2 million in annual revenue. Over the years, the non-profit received $9.6 million in grants from city agencies to address the needs of the District's Latino and LGBTQ youth communities. During this period, Corado reportedly earned $260,000 in compensation.

Corado herself has a compelling personal story, having immigrated to the U.S. at 16 and experienced periods of homelessness and working as a sex worker. Eventually, she became an advocate for the rights of Latin transgender individuals.

The Washington Post has reported that a court-appointed receiver has filed a lawsuit against the board of Casa Ruby, alleging a failure to provide proper oversight. It is claimed that this lack of supervision enabled Corado to embezzle over $800,000 and establish an unauthorized office in El Salvador.

As the legal proceedings unfold, the consequences of Corado's actions will undoubtedly impact the ongoing support and care provided to homeless LGBTQ youths in Washington, D.C. Authorities will be closely scrutinizing the organization's leadership and governance to ensure the proper use of funds and prevent further exploitation of vulnerable communities.