Giuliani’s Worst Nightmare

Rudy Giuliani

(TheIndependentStar.com) – In a development threatening to unravel into Rudy Giuliani’s worst nightmare, the financial dealings of America’s Mayor have been scrutinized in a bankruptcy court as his creditors urged the judge to assign a trustee to manage his financial affairs.

After listening to over two hours of legal debate on Monday, US Bankruptcy Judge Sean Lane did not immediately decide on the creditors’ petition, although he expressed concerns about various aspects of the case, notably issues related to financial disclosures and Giuliani’s difficulties in maintaining consistent financial oversight.

“There are reasons to be very concerned here. I’m not going to beat a dead horse,” Judge Lane remarked just before ending the session, cited by The Hill.

Giuliani sought protection under Chapter 11 in December following a severe $148 million judgment in a defamation lawsuit initiated by two Georgia election workers, whom he falsely accused of fraud in the 2020 election.

While the plaintiffs in the defamation case believe that bankruptcy will not nullify their awarded damages, the Chapter 11 filing has so far allowed Giuliani to retain control over his assets.

The hearing on Monday was the peak of escalating conflicts between Giuliani and his creditors. The creditors have accused the former lawyer to President Trump of concealing his financial status and allege that his bankruptcy filing is merely a strategic delay.

“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,” attorney Rachel Strickland, representing the election workers, conveyed to Judge Lane during the proceedings.

Strickland further noted that Giuliani’s bookkeeper is currently ill and his accountant has resigned.

“Those are huge red flags that warrant that adult supervision,” she stated.

Rachel Biblo Block, representing the unsecured creditors committee, argued for the necessity of appointing a trustee due to Giuliani’s “gross mismanagement” of his finances.

She highlighted significant and unrestrained spending, including $26,000 on credit card payments and numerous transactions on Amazon since the bankruptcy declaration.

Acknowledging past mishandlings, Giuliani’s lawyer, Gary Fischoff, admitted to the delays in financial reporting and improper credit card usage.

However, Fischoff defended the case, asserting improvements in the financial management, including the cancellation of the credit cards and interest from a new accounting professional to join the team.

“I understand that it has taken some time, but what’s important is the debtor has been paying these expenses not with creditors’ money, with his own money,” Fischoff explained.

“How do I know that?” Judge Lane questioned, highlighting the creditors’ ongoing concerns about the transparency of Giuliani’s company finances.

The court session, held in White Plains, N.Y., saw Giuliani participating remotely, immediately going live on his daily online show after the hearing ended.

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