In the latest of Rudy Giuliani’s legal troubles, his creditors are attempting to push a bankruptcy judge to appoint a trustee to oversee his finances and force him to submit monthly operating reports on time, according to several media reports.
Giuliani’s financial woes continue to deepen, as the disgraced former New York City mayor has been trying to find ways to fend off a whopping $148 million verdict against him involving two Georgia election workers whom he baselessly accused of election fraud in 2020. Giuliani was one of many people indicted alongside former President Donald Trump in Georgia for allegedly participating in a plot to overturn the outcome of the 2020 presidential election in the Peach State.
Giuliani’s bookkeeping faced heavy criticism during a three-hour court hearing on June 17 in his Chapter 11 bankruptcy case, The Independent reported. U.S. Bankruptcy Judge Sean Lane listened to heated arguments from creditors who want Giuliani’s finances seized by an appointed trustee.
The unsecured creditors’ committee wrote in a June 17 court filing: “Because the Debtor has failed to comply with the 2004 Order and produce the requested documents on behalf of his businesses, it is impossible to know with any precision the details of this arrangement. However, surely, the former mayor of New York City, a former United States Associate Attorney General and a former United States Attorney for the Southern District of New York, can and should find a paying job that will help fund distributions to his creditors instead of kickbacks to his cronies and a personal slush fund.”
Giuliani attended the hearing via Zoom, sitting in front of a shelf with a bust of President Lincoln and packages of his Rudy Coffee, a source told The Independent. But despite lengthy arguments, Lane has yet to make a ruling on the matter. Giuliani’s next bankruptcy hearing is scheduled for July 10.
“There are reasons to be concerned here,” Judge Lane stated, admitting the former mayor’s records are a “mess,” as reported by the Independent. “If people don’t obey court orders, it’s a profound problem,” the judge warned, hinting at stricter enforcement.
According to The Hill, Monday’s hearing marked the culmination of months of rising tensions between Giuliani and his creditors, who accuse him of obscuring his finances and using bankruptcy as a delay tactic.
Since filing for bankruptcy, his finances have been exposed, revealing hundreds of thousands in unpaid taxes and credit card debt, plus potential millions owed from litigation. Beyond the election workers’ case, Giuliani could owe over $3.5 million if outstanding lawsuits are resolved against him, along with other claims, including those from Dominion Voting Systems and Smartmatic over his 2020 election fraud allegations, The Hill reported.
“He’s not a doddering 80-year-old. He is a shrewd and manipulative man. His reports are false, inconsistent, and late. His deadlines are ignored,” Rachel Strickland, the election workers’ attorney, told Judge Lane, as reported by The Hill.
Strickland also highlighted Giuliani’s bookkeeper being ill and his accountant quitting. “Those are huge red flags that warrant adult supervision,” she said.
Rachel Biblo Block, an attorney for the unsecured creditors committee, said Giuliani’s “gross mismanagement” of his finances necessitates appointing a trustee to take control. She also noted Giuliani’s failure to “rein in his spending,” citing $26,000 in credit card payments and over 50 Amazon transactions since filing for bankruptcy.
Meanwhile, Giuliani is facing legal liability for working to send slates of fake electors to Washington to change the outcome of the 2020 election, according to several media reports. He is among Trump’s allies referred to the Department of Justice for criminal charges by the House Jan. 6 committee.
Giuliani was processed in Phoenix, Arizona, on charges that he attempted to overturn the 2020 election results in the state. After posting a $10,000 bond on June 10, his mug shot was released, where he was seen smiling and looking downward.
When asked if he had any regrets about his actions related to the election interference cases, Giuliani said, “Oh, my goodness, no,” adding, “I’m very, very proud of it,” according to NBC News. His assets are listed as being between $1 million and $10 million, and his total debt is listed at $151 million, including close to $1 million in back taxes.
