Article Summary –
A federal judge in New York dismissed Rudy Giuliani’s bankruptcy case, allowing creditors, including two Georgia election workers who won a $148 million defamation claim against him, to pursue and potentially seize his assets. U.S. Bankruptcy Judge Sean Lane cited Giuliani’s repeated failures to provide financial transparency and meet reporting obligations, highlighting his “troubling” conduct, and restricted him from seeking bankruptcy protection for one year. This decision enables Freeman, Moss, and other creditors to take legal action to collect money owed, while also reopening pending lawsuits, including defamation claims and other allegations against Giuliani.
A federal judge in New York on Friday dismissed Rudy Giuliani’s bankruptcy case, allowing creditors, including two former Georgia election workers, to pursue and potentially seize his assets. The dismissal follows a $148 million defamation claim won by the election workers.
U.S. Bankruptcy Judge Sean Lane’s decision comes nearly seven months after Giuliani sought bankruptcy protection due to a mandate to pay millions in damages to Ruby Freeman and Shaye Moss. The judge cited Giuliani’s lack of financial transparency and restricted him from seeking bankruptcy protection for one year.
Ted Goodman, a spokesman for Giuliani, criticized the decision, stating it was an attempt to punish Giuliani. He expressed confidence that the justice system would eventually vindicate him.
The ruling allows Freeman, Moss, and other creditors to resume lawsuits against Giuliani, including defamation suits by Dominion Voting Systems, Smartmatic, and a harassment claim by Nicole Dunphy.
Claims arose that Giuliani used bankruptcy proceedings to conceal asset details and evade payments. Creditors, including former CIA and FBI officials, investigated for hidden assets, seeking testimony from individuals like My Pillow CEO Mike Lindell, who was subpoenaed last month. Potential lawsuits against parties owing Giuliani money, such as Donald Trump, were also suggested.
During a court hearing, Giuliani claimed Trump owed him about $2 million in unpaid legal fees, though he suggested the debt was with the Trump campaign or the Republican National Committee. He noted a potential claim against Trump personally for unpaid fees.
Giuliani listed approximately $153 million in debts, including $3.7 million in unpaid legal fees and over $1 million in state and federal taxes, while claiming about $11 million in assets, such as a New York apartment and a Florida condo.
Creditors and the judge criticized Giuliani for his incomplete financial disclosures and missing court deadlines. His lawyers cited administrative struggles, including hiring an accountant, for the inconsistencies.
Giuliani’s legal strategies shifted recently, initially seeking Chapter 11 bankruptcy protection before abruptly requesting Chapter 7 bankruptcy, drawing objections for potential delay tactics. Before a hearing on his request, he asked the judge to dismiss the bankruptcy case altogether.
Giuliani faced accusations of acting in bad faith, with Rachel Strickland, an attorney for Freeman and Moss, suggesting the case should be thrown out unless the judge considered imprisoning him.
The judge signaled he was inclined to dismiss the case, indicating Giuliani would continue to avoid transparency. Giuliani’s attorneys argued the dismissal would enable him to appeal the defamation judgment, although he would need to post a $148 million bond to do so.
Giuliani is facing criminal charges in Georgia and Arizona over his role in the 2020 election efforts, and has pleaded not guilty in both cases. Last week, he was formally disbarred in New York for repeatedly making false statements about the election.
Before the ruling, creditors demanded Giuliani turn over his cash and sign over control of his New York apartment to an appointed trustee. The judge declined to immediately address these demands, calling it “premature.”
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