Another Liberal Activist Found Guilty For Fraud

A federal judge on Tuesday sentenced Ruby Corado, a prominent LGBTQ+ activist and founder of the Washington-based nonprofit Casa Ruby, to 33 months in prison for wire fraud tied to the misuse of federal pandemic relief funds, ordering nearly $1 million in restitution and setting in motion immigration proceedings expected to end in her deportation.

Corado has long been a fixture in liberal activism.

U.S. District Judge Trevor N. McFadden imposed the sentence at the E. Barrett Prettyman United States Courthouse, requiring Corado to repay $956,215 to the Small Business Administration and to immediately report to Immigration and Customs Enforcement. McFadden made clear that deportation was “likely, if not certain,” noting Corado’s status as a legal permanent resident.

“You came to this country hiding under the floorboards of a vegetable truck and this country gave you refuge,” McFadden told Corado. “You betrayed this country.”

Corado, 54, appeared in court wearing an orange jumpsuit, her long gray-streaked hair unstyled, reported The Washington Post. She grew emotional while addressing the court, expressing remorse for her conduct. “I wish I could’ve done things differently, but it is already done,” she said, pausing to weep. “I got caught up in my mission to help others. But I am the first one to hold myself accountable.”

Corado pleaded guilty in July 2024 to one count of wire fraud, admitting she diverted more than $150,000 in COVID-19 relief funds to personal offshore accounts in El Salvador. Prosecutors said the broader scheme involved nearly $300,000 moved beyond the reach of U.S. law enforcement and argued that the full $956,215 in loans obtained by Casa Ruby was secured through misrepresentations. They described the conduct as “dishonest and disgusting,” urging the court to impose the 33-month sentence.

Defense attorney Pleasant S. Brodnax sought a far lighter punishment, requesting time served in home confinement. Brodnax argued that Corado, as a transgender woman, would face serious safety risks under Trump administration policies requiring prison placement based on sex assigned at birth, calling such incarceration “cruel and unusual punishment.” He described Corado as having been “in over her head” as Casa Ruby rapidly expanded.

Judge McFadden rejected that argument, stating that granting leniency on that basis would amount to unequal treatment. “People should be treated equally,” he said, adding he did not want to treat Corado “more favorably because you are transgender.”

Corado immigrated from El Salvador as a teenager in the 1980s and initially lived on the streets of Washington. She founded Casa Ruby more than two decades ago as a small drop-in center serving LGBTQ+ individuals, particularly transgender women of color, immigrants, sex workers, and homeless youth. The organization later expanded dramatically, serving thousands each year and employing many transgender and formerly homeless individuals. Corado became a visible figure in Democratic political circles, appearing alongside then–D.C. Mayor Muriel E. Bowser and traveling with her to El Salvador in 2018.

That prominence faded as Casa Ruby came under increasing scrutiny. Allegations mounted of unpaid rents, unsafe facilities, financial mismanagement, and employee mistreatment. In 2022, Corado fled to El Salvador amid the controversy, and the organization shuttered its operations. She was arrested in 2024 after returning to the United States. A 2023 lawsuit filed by a court-appointed receiver accused the nonprofit’s board of failing to oversee unauthorized salary increases and the opening of an office in El Salvador.

In court, the defense argued that most of the funds were used for legitimate U.S. operations and that transfers abroad were intended to support transgender shelter efforts in El Salvador. Judge McFadden rejected that claim, holding Corado responsible for the full amount of the fraudulently obtained loans.

McFadden ordered two years of supervised release following imprisonment, if Corado is not deported, and asked the Bureau of Prisons to consider housing her near Washington, though he declined to direct placement. He concluded by stressing deterrence in government fraud cases: “It’s important that people know there are significant consequences for defrauding the government. I hope you will use this time as a chastening period.”

Corado follows a long line of liberal activists and Democratic politicians who have found themselves in trouble for grifting millions of dollars, both from supporters and taxpayers.

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