The founder of a nonprofit serving D.C.’s LGBT community diverted hundreds of thousands dollars meant for the group’s indigent clients to her personal bank accounts, the Districtsaid in a court filing Monday.

The city also alleges that Casa Ruby and its founder, Ruby Corado, violated District laws by paying workers less than the minimum wage and not paying workers all of the wages they earned.

The latest set of accusations against Casa Ruby and Corado comes from an ongoing lawsuit filed by D.C. Attorney General Karl A. Racine (D). The nonprofit shut down earlier this year.

In an amended complaint, Racine’s office alleges that Corado set up three companies as part of a federal program to distribute drugs that prevent HIV transmission to uninsured and underinsured clients. The companies bought the drugs at a discount, the filing said, but could be reimbursed by insurers for the full price, and under federal rules, Casa Ruby was allowed to keep the difference.

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Corado allegedly set up bank accounts for the firms and, between 2019 and 2022, withdrew more than $100,000 and transferred more than $400,000 into personal bank accounts in El Salvador without authorization from Casa Ruby’s board of directors, the filing said.

In a phone interview Tuesday from El Salvador, Corado did not address specific allegations in the filing and instead gave a blanket denial. She said she had been targeted by city officials who never accepted her as an activist who is an immigrant,...

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