A court-ordered assessment of the financial and operational status of Casa Ruby has determined that the once-famed LGBTQ+ nonprofit is not fit to continue operating, even if a new board of directors were appointed.

The report, which was filed in D.C. Superior Court on Tuesday, comes after accusations of unpaid wages and abuse of power by the organization’s founder and former executive director, Ruby Corado. In August, Judge Danya Dayson appointed the Wanda Alston Foundation (WAF), another longtime D.C.-based LGBTQ+ organization, to be Casa Ruby’s receiver — a neutral third party that would conduct a financial audit of Casa Ruby and serve as its trustee.

“Casa Ruby’s Board of Directors failed to provide any meaningful oversight and Casa Ruby should be dissolved in an orderly manner pursuant to D.C. Code,” reads WAF’s report, which was first noticed by The Washington Blade.

According to its report, WAF took custody of two properties Casa Ruby leased in Dupont Circle and found them in complete disarray, as if they’d been “ransacked.” After securing as many documents as possible and contacting the landlord, banks, and other non-profit organizations Casa Ruby owed money to, the foundation calculated that it owed creditors at least $2 million.

The report also says WAF found several months of clients’ unopened and unsent mail, multiple large lockers on the wall filled with clients’ personal belongings, and files containing sensitive information from former clients scattered throughout the offices. WAF also says there are at least five open claims against Casa Ruby for breach of contract, and that the nonprofit owed rent dating back to 2020.

“The [Wanda Alston Foundation] also wanted to minimize the harm to Casa Ruby’s former clients and employees by dealing with the accumulated mail and wall lockers,” the report reads. “After those immediate issues were addressed, [WAF] would have to take more time to review and examine the documents salvaged from the two locations and conduct a more extensive dialogue with the LGBTQ+ community to determine how to address the larger issues created by Casa Ruby’s collapse.”

The Alston Foundation’s receivership lasts until Sept. 21, after which Casy Ruby’s former landlord will take possession of the two leased properties. The foundation said it might need more time to review all the documents at one of the locations on Connecticut Avenue NW, and requested a stay of the eviction for another 30 days. WAF told the court it could have another report prepared by Oct. 15.

The foundation also says it alerted D.C. Attorney General Karl Racine’s office that it uncovered “potential criminal misconduct” and advised it to arrange for the collection of evidence.

Corado did not immediately respond to a request for comment sent to email addresses listed for her in the court filing. According to Racine’s office, which requested the audit and froze Casa Ruby’s bank accounts last month, Corado attended a virtual hearing about the court order from somewhere in the District.

An El Tiempo Latino investigation showed that former Casa Ruby employees often went weeks or months without pay and that there were deeper issues at the well-established organization, including sexual harassment claims and allegations of payments to employees to remain silent.

Judge Dayson scheduled another hearing for Sept. 29, in which Corado is requested to attend virtually or in person, according to the Blade.