A federal judge on Tuesday ordered the release of Ruby Corado, founder and former executive director of Casa Ruby, into the custody of her niece in Rockville, Md., after agreeing with arguments by Corado’s defense attorney that she is not at high risk of fleeing to El Salvador.

The decision by U.S. District Court Magistrate Judge Robin M. Meriweather to order Corado’s release at 9 a.m. on Wednesday, March 13, came seven days after the FBI arrested Corado shortly after she returned to the U.S. from El Salvador. She has been charged with bank fraud, wire fraud and money laundering, among other charges, related to allegations that she embezzled at least $150,000 from Casa Ruby that the LGBTQ community services group had obtained from federal COVID-19 relief programs.

Corado had been held in jail since the time of her arrest on March 5. She appeared before Meriweather last Friday, March 8, for a detention hearing in which the judge said she was not ready to rule on whether Corado should continue to be held until the time of her trial or released.

Meriweather scheduled a second detention hearing on Tuesday, March 12, to give Corado’s defense attorney more time to submit a release proposal, which was expected to call for Corado to be released into the custody of a family member that would include conditions assuring that Corado would not be a flight risk.

The niece to whom Corado will be released, Jessica Dieguez, told the court Corado would be staying at her and her husband’s home in Rockville. After being called by the judge to the witness stand to testify, Dieguez said she would do her best to ensure that Corado complies with the terms of her release, which the judge said consists of home detention. The release terms require that while she awaits her trial, Corado must remain at Dieguez’s home except for court appearances or medical related visits to a health care facility.

“Defendant is to be released on 3/13/2024 to a 3rd party custodian,” the court docket for the Corado case states. “Defendant and custodian sworn to conditions of release,” it states. The judge said Corado will be placed on GPS monitoring and will not have access to her passport.

 The docket shows Corado’s next court appearance for a status hearing is scheduled for April 12 at 1 p.m. before another judge, Magistrate Judge Zia M. Faruqui.

“The government has failed to set forth sufficient facts to find that Ms. Corado is a serious risk of flight,” Federal Public Defender Service attorney Diane Shrewsbury stated in an amended motion in support of Corado’s pretrial release. “Ms. Corado asks the court to find that there are conditions that will reasonably ensure her appearance and ensure the safety of the community and to release her under those conditions,” Shrewsbury stated in her court memorandum.

Meriweather’s decision came after prosecutors with the Office of the U.S. Attorney for D.C. called on the judge to order Corado held in custody until the time of her trial on grounds that she would be a flight risk. Assistant U.S. Attorney John Borchert, the lead prosecutor in the case, stated in oral arguments on March 8 and in a 12-page Memorandum in Support of Pretrial Detention, which he later updated, that Corado poses “a unique and serious flight risk.”

Among other things, he said Corado fled to El Salvador in 2022 shortly before Casa Ruby shut down its operations, after news media reports surfaced that Corado was under investigation for financial improprieties at Casa Ruby that led to its shutdown. He also pointed to a criminal complaint and arrest affidavit charging Corado with Bank Fraud, Wire Fraud, Laundering of Monetary Instruments, and Failure to File Report of Foreign Bank Account – all related to allegations that she embezzled funds from Casa Ruby that came from at least two federal COVID pandemic relief programs.

“Without question, the offenses described in the complaint are serious and carry substantial penalties,” Borchert states in his memo in support of pretrial detention. “The amount of federal money stolen by the defendant – at least $150,000 – and deposited into her personal bank accounts in El Salvador is both substantial and troubling, particularly given that these funds were intended for the benefit of District youth in need of housing and other services,” he said, referring to Casa Ruby’s longstanding programs in support of LGBTQ youth.

Shrewsbury argued that a preponderance of factors shows that Corado would not be a flight risk. The attorney disclosed that Corado returned to the U.S. from El Salvador in February 2024 to remain in the D.C. area permanently after having lived in the D.C. area for 35 years. She said Corado went to El Salvador in 2022 to start an international arm of Casa Ruby and did not go there to flee from law enforcement.

“She was prepared to resume her life in the United States when she returned in February,” Shrewsbury states in her court memo. “At the time of her arrest, Ms. Corado did not have a return ticket to go back to El Salvador,” she said. “She was in the process of securing a new job in the United States. Additionally, Ms. Corado has significant family and friends in the D.C. area, including her sisters, her father, her sister-in-law and numerous friends,” the pre-trial release memo continues.

“She is married to a U.S. citizen, who grew up in the D.C. area and continues to have family here,” the memo says. “In approximately 2007, Ms. Corado received legal permanent resident status” in the U.S., it says, further confirming her intention of remaining in the U.S. Shrewsbury said at the time of her arrest, Corado’s passport from El Salvador was confiscated, further ensuring that she would not flee to another country if released.

The attorney also argued that Corado’s status as a transgender woman placed her in danger of possible sexual assault at the D.C. Jail, where she was placed in protective custody in the male housing section of the jail.

Shrewsbury’s motion and memo calling for Corado’s release, first filed in court on March 8, used the male pronouns of “he,” “him” and “his” in four separate pages of the memo to identify Corado. Court records show that on Monday, March 11, one day before the follow-up detention hearing, Shrewsbury filed a second amended version of the memorandum that changed the misgendered pronouns to female pronouns.

After the court hearing on Tuesday, Shrewsbury told the Washington Blade the misgendered pronouns were typographic mistakes as she wrote her motion late at night. She said she was sorry about the mistake, which she said was quickly corrected with the updated document.

Corado, who was escorted into court at both hearings wearing an orange prison jump suit, did not speak at the hearings.