Rudy Giuliani’s petition for bankruptcy protections was denied by a bankruptcy judge in New York on Friday. The judge determined that the former counsel to former President Donald Trump had neglected to disclose critical financial information, despite receiving numerous instructions to that effect.
Judge Sean Lane’s order enables two former election workers in Georgia who were repeatedly defamed by Giuliani following the 2020 election to commence collecting on their $146 million verdict against him.
Giuliani submitted his bankruptcy petition in December, shortly after a jury awarded Ruby Freeman and her daughter Wandrea “Shaye” Moss nearly $150 million for the false allegations of election fraud he made against them.
The bankruptcy filing had allowed Giuliani to obtain protection from creditors under the “automatic stay” provision of federal bankruptcy law. This provision, with certain exceptions, suspends the enforcement of pre-existing judgments and ongoing litigation.
In that case, Giuliani was found liable for defaming Freeman and Moss after repeatedly disregarding court orders. Lane stated in his 22-page ruling on Friday that the former New York City mayor also disregarded court orders in the bankruptcy case. Lane stated that Giuliani had neglected to disclose just about any pertinent information regarding his enterprises. The judge stated that the information he did provide regarding his income and expenditures was frequently inaccurate or incomplete.
“Every single monthly operating report filed by Mr. Giuliani has been untimely,” Lane indicated. “The information in the monthly operating reports has been incomplete or inaccurate, which is potentially even more concerning.” For instance, the bank statements for February 2023 are included in the monthly operating report for February 2024, which is incorrect.
“The monthly operating reports also appear to contain errors as none of the end-of-month cash balances match the opening cash balance for the following month,” according to the judge.
The judge also observed that Giuliani was not forthcoming with information regarding a book contract or a coffee sponsorship agreement.
“The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-dealing,” Lane pointed out. Giuliani also stated that he “received no income other than his social security benefits” despite receiving compensation from other sources, such as “between $100,000 and $150,000” from his work anchoring a podcast called America’s Mayor Live.
The conclusion of the bankruptcy case, in the absence of an appeals court’s intervention, allows Freeman and Moss to pursue Giuliani’s assets, which include his bank accounts and residence.
Another potential course of action for Freeman and Moss is to accept Giuliani’s assertions that Trump and the Republican National Committee owe him $2 million for his efforts in contesting the 2020 election results. They could even pursue legal action against these entities directly.
According to a source who is well-versed in the case, Freeman and Moss will “explore all feasible alternatives” to resolve their claims.
Rachel Strickland, the primary bankruptcy attorney for the mother and daughter, stated in a statement on Friday that Giuliani had filed his petition “in bad faith” and “tried to game the legal system and further harm Ruby and Shaye.”
“Judge Lane rejected the case after recognizing Giuliani’s deceptive strategies,” Strickland stated that Ruby and Shaye can subsequently begin to exercise their discernment and hold Rudy accountable for his malicious lies.
Ted Goodman, a spokesperson for Giuliani, stated that the “bankruptcy case was burdened with many of the same voluminous and overly broad discover requests and other actions — including regular leaks of information — intended to harm the mayor and destroy his businesses.” He also claimed that he had been denied the opportunity to appeal the defamation judgment while the proceeding was pending.
The judge’s decision is made during a challenging period for Giuliani, a former federal prosecutor.
Giuliani’s program was suspended and canceled by WABC radio in May due to his continued dissemination of inaccurate information regarding the 2020 election. This action could have resulted in legal liability for the station. This month, he was disbarred in New York for his falsehoods during the election and is also at risk of losing his law license in Washington, D.C as per NBC news.
Giuliani has also been charged with election fraud in Arizona and Georgia and is an unindicted co-conspirator in special counsel Jack Smith’s federal election interference case against Trump. He has entered a plea of not guilty and has denied any malfeasance.