Rudy Giuliani’s bankruptcy case tossed out, judge says ex-NYC mayor was evasive with assets
A New York judge tossed out Rudy Giuliani’s bankruptcy case Friday, ruling that man formerly known as “America’s Mayor” has repeatedly been evasive about his assets.
White Plains federal bankruptcy Judge Sean Lane sided with lawyers for two former Georgia election workers who are owed a $148 million verdict from Giuliani that his Chapter 11 case should be dismissed.
“The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-dealing and that he has potential conflicts of interest that would hamper the administration of his bankruptcy case,” Lane said in a 22-page decision.
Lane said Giuliani failed to turn over any financial information for his companies, failed to accurately and completely submit monthly reports and initially hid that he had penned a deal for an upcoming book.
A group of creditors — including Ruby Freeman and her daughter Shay Moss, to whom Giuliani owes the massive judgment for falsely accusing them of committing election fraud in 2020 — have claimed he’s been hiding assets, submitting error-laden reports and spending frivolously.
“This lack of transparency— apparently even to Mr. Giuliani’s own counsel — raises significant concerns about Mr. Giuliani’s ability and willingness to manage the bankruptcy estate in the best interest of his creditors,” Lane’s ruling reads.
Giuliani’s deal with a coffee brand was only revealed to creditors — and his own lawyer — through media reports, Lane noted.
And the little information he has turned over has been full of “deficiencies,” Lane said.
Lane said that normally when debtors are accused of flouting bankruptcy laws and hiding funds, they try to at least partially comply.
“By contrast, Mr. Giuliani has done nothing,” the judge charged.
They had argued for a trustee to be installed to oversee the finances of Giuliani — once fondly known as “America’s Mayor” for his response to the 9/11 terror attacks while he was in office.
But at a hearing Wednesday, Moss and Freeman’s lawyers argued that since Giuliani hasn’t been following bankruptcy rules, the case should be tossed so they can try to reclaim what they are owed through other measures, such as getting a court order to seize his assets.
Giuliani lawyer Gary Fischoff even agreed that ending the case may be the best option — because it would allow his client to start an appeal of the $148 million judgment.
A committee for Giuliani’s other creditors, however, favored the case continuing with a trustee appointed for fear that if the case ended all of Giuliani’s creditors would race to other courts — leaving some with nothing.
But Lane determined it’s in the best interest of everyone involved to end Giuliani’s case which otherwise could have lingered on for years and ended with creditors getting little, to no money, after legal fees would have surely eaten into any money obtained from Giuliani.”Forcing creditors to wait years while they are prevented from pursuing their rights for, at best, a modest distribution seems inequitable and ill-advised,” the judge wrote.
Lane’s ruling bars Giuliani from filing for bankruptcy for a year to give creditors time to seek to enforce judgements or conclude pending cases.
Moss and Freeman’s lawyer Rachel Strickland Wednesday argued that Giuliani had been using bankruptcy to allow him to carry on as normal.
“He regards this court as a pause button on his woes while he continues to live his life unbothered by creditors,” Strickland said at the time.
Meanwhile, a group of Giuliani’s other creditors said Wednesday they wanted to keep the bankruptcy case alive and have a trustee appointed to ensure Giuliani complies.
But Strickland argued that a trustee would run up a hefty tab, diminishing whatever funds they are able to secure from Giuliani.
Lane noted in his decision that the committee of debtors has already racked up a $400,000 bill from a financial advisor.
There are nine outstanding lawsuits against Giuliani, many of which “have a right to a jury trial,” Lane wrote, adding they are “better resolved outside the bankruptcy forum.”
The judge also highlighted that Giuliani’s own lawyer admitted if a trustee was appointed, Giuliani might stop working.
Giuliani, 80, filed for bankruptcy in December mere weeks after Freeman and Moss won the huge verdict.
Strickland told The Post Friday her clients will be seeking to have their judgment enforced right away.
“Freeman and Moss have already waited too long for justice,” Strickland said. “We are pleased the Court saw through Mr. Giuliani’s games and put a stop to his abuse of the bankruptcy process.”
Giuliani political advisor Ted Goodman told The Post it was unfair that Giuliani wasn’t granted his request to have lifted a pause on litigation — that is automatically triggered with bankruptcy cases — so he could appeal the Freeman and Moss verdict.
“This whole bankruptcy case was burdened with many of the same voluminous and overly broad discovery requests and other actions — including regular leaks of information — intended to harm the mayor and destroy his businesses,” Goodman said of the routine requirements that come with bankruptcy protection.
The embattled long-time attorney lost his law license in New York earlier this month for repeatedly making false claims about the 2020 election when he was working as President Donald Trump’s lawyer.
Giuliani was actually canned from his job as a radio show host on WABC in May for continuing to spout those lies, which station owner John Catsimatidis said broke company policy.
Giuliani also faces two criminal cases in Arizona and in Georgia — in the latter of which he’s charged alongside Trump — for allegedly trying to interfere in the 2020 election in both states on Trump’s behalf.
He’s pleaded not guilty to the charges.
With Post wires
