Trans founder of defunct LGBTQ nonprofit sentenced to 33 months in prison, $1 MILLION fine for pandemic relief fraud

The transgender founder of a DC-based LGBTQ nonprofit, Ruby Jade Corado, has been sentenced to 33 months in prison and ordered to pay nearly $1 million in restitution after pleading guilty to wire fraud over the misuse of Covid-era emergency relief funds.

56-year-old trans-identified male Corado, also known as Vladimir Orlando Artiga Corado, pleaded guilty to one count of wire fraud in July of 2024. In a court document, prosecutors said that Corado "submitted false and fraudulent loan agreements" to the Small Business Administration (SBA) to obtain a $500,000 loan for Casa Ruby from the Covid-era Economic Injury Disaster Loan program. Corado "falsely and fraudulently promised, certified, and attested to the SBA that: (a) the funds would only be used as 'working capital to alleviate economic injury' from the Covid-19 health rises, (b) Corado would not use any portion of the EIDL funds to relocate outside of the United States without the SBA’s consent, and (c) Corado would not distribute or transfer any of Casa Ruby’s assets 'to any owner or partner or any of its employees, or to any company directly or indirectly controlling or affiliated with or controlled by Borrower, or any other company' without SBA’s consent."

In the weeks following, Corado moved tens of thousands of dollars from Casa Ruby’s bank account to other accounts he owned, including an account for Corado’s consulting company. Corado once again applied for a loan for Casa Ruby in February of 2021, this time from the SBA’s Paycheck Protection Program, attesting that the funds would only be used for payroll costs, rent/mortgage interest, and utilities. Corado also transferred these funds to other bank about "controlled for Corado’s personal benefit," prosecutors said. In September of the same year, Corado applied for loan forgiveness for the full amount of the PPP loan, which was forgiven. 

Prosecutors said, "Corado admits that the proceeds she personally obtained as a result of her criminal activity described above have been dissipated by her and cannot be located upon the exercise of due diligence, have been transferred or sold to, or deposited with, a third party; and/or have been placed beyond the jurisdiction of the Court.

The Department of Justice said that once the financial irregularities became public, Corado sold his Maryland home and fled to his home country of El Salvador. Corado was a lawful permanent resident of the United States. Corado was arrested by FBI agents on March 5, 2024 at a Laurel, Maryland hotel after unexpectedly returning to the United States. 

Casa Ruby, which has since become defunct, claimed to provide housing services for LGBTQ youth as well as assist LGBTQ immigrants through providing social services. The nonprofit had claimed to employ over 50 people and provided over 30,000 social and human services to over 6,000 people per year. The nonprofit was based in Washington, DC, where it operated multiple shelters. 

US Attorney Jeanine Pirro said in a statement, "Corado received more than $1.3 million from the Paycheck Protection Program and the Economic Injury Disaster Loan program for the non-profit Casa Ruby. Instead of using the funds as promised, Corado stole over $950,000, transferred at least $150,000 to bank accounts in El Salvador, and hid it from the IRS."