Rudy Giuliani is no longer entitled to bankruptcy protection, a judge decided yesterday, making it possible for creditors to immediately pursue his assets within days.
The former mayor of New York sought bankruptcy protection after a jury awarded two Georgia election workers $US148 million ($218 million) because Giuliani defamed them after the 2020 election.
The judge’s decision Friday, to end his bankruptcy, paves the way for Ruby Freeman and Shaye Moss, as well as other creditors, who are trying to collect on the more than $US150 million ($221 million) Giuliani owes.
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Judge Sean Lane of the federal bankruptcy court in New York made the decision partly because of Giuliani’s lack of transparency after he filed for bankruptcy more than six months ago.
Lane highlighted in his 22-page opinion that Giuliani hadn’t provided any insight whatsoever into the books of companies he solely owns, and that have taken in thousands of dollars in wire transfers in recent weeks.
The judge also said Giuliani hasn’t been fully transparent with his creditors – such as by not fully explaining on time an upcoming book contract he has, or keeping his personal earnings from a radio show and podcast coming into one of the corporate accounts.
“Giuliani has failed to provide an accurate and complete picture of his financial affairs in the six months that this case has been pending,” Lane wrote in his decision Friday.
“The lack of financial transparency is particularly troubling given concerns that Giuliani has engaged in self-dealing and that he has potential conflicts of interest that would hamper the administration of his bankruptcy case.”
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Giuliani – once Time magazine’s Person of the Year and a fixture in New York society – says he is now worth about $US10.6 million ($15.6 million), with nearly all of that wealth in the value of two apartments he owns, in New York City and in Palm Beach, Florida.
Moss and Freeman plan to seek liens on those properties in the coming days, according to their lawyers.
Giuliani’s attorneys have indicated he plans to appeal the defamation jury verdict in favor of Moss and Freeman and that he may fight them in state court on any liens they seek.
In addition to the $US6 million ($8.8 million), three-bedroom co-op apartment on the Upper East Side of Manhattan and the $US3.5 million ($5.1 million) condo on the Intracoastal Waterway in Florida, Giuliani’s creditors will also be able to try to seize his bank accounts, a Mercedes-Benz sports car, his collection of 26 luxury watches, three World Series championship rings for the New York Yankees, and other baseball memorabilia, like a signed Joe DiMaggio shirt he claims to own.
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The worth of those other assets is unclear, as creditors accuse Giuliani of downplaying or not disclosing complete estimates of the value of what he owns.
The creditors believe one World Series ring alone would sell for nearly $US30,000 ($44,000), according to court filings in his bankruptcy case.
Giuliani also says in bankruptcy filings that the state of California owes him more than $US10,000 ($14,000) related to overpaid taxes from his appearance on the TV singing game show “The Masked Singer,” according to bankruptcy filings.
Giuliani also said in filings in recent weeks that he expects to be paid tens of thousands of dollars from various ventures: coffee beans being marketed with his name and image, and a documentary that’s been in the works for years.
The court decision on Friday, announced by Lane in White Plains, New York, marks a long, slow decline for Giuliani, largely related to his work as a lawyer for former President Donald Trump after the 2020 election.
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Giuliani lost his law licence in New York last week because he had pushed false information in court challenging the election results on behalf of Trump.
He is also fighting criminal charges in Arizona and Georgia related to Trump’s efforts to undermine his electoral loss. Giuliani has pleaded not guilty in both cases.
Giuliani agreed to end his bankruptcy proceedings, after Freeman and Moss suggested that approach earlier this week.
They and other creditors had become furious with the lack of transparency he provided into his assets.
The creditors argued to the judge in recent days that Giuliani was exploiting the bankruptcy system to avoid having to pay his debts, and was acting in bad faith.
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That accusation prompted outbursts from Giuliani in court, claiming he was the one being defamed.
In addition to Moss and Freeman, Giuliani owes more $US1 million ($1.4 million) in taxes, tens of thousands of dollars in unpaid phone bills, and more than $1.4 million to a law firm where a close friend represented him through past investigations.
Several other companies and people, such as a former assistant and the voting machine companies Smartmatic and Dominion, are suing him too.
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