Rudy Giuliani is treating his bankruptcy case like a ‘joke’, creditors say

  • 7/9/2024
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The former New York mayor Rudy Giuliani is treating his bankruptcy case as a “joke”, lawyers for the Donald Trump ally’s creditors said in a new filing, alleging the former president’s sometime attorney was attempting to avoid accountability by “hiding behind the facade of an elderly, doddering man”. “Since day one,” attorneys said, “Giuliani has regarded this case and the bankruptcy process as a joke, hiding behind the facade of an elderly, doddering man who cannot even remember the address for his second multimillion-dollar home and claims impending homelessness if he must sell that second multimillion-dollar home. “In reality, Giuliani has treated this court, the bankruptcy process and the committee … with utter disrespect and without accountability.” Giuliani, 80, led New York through the 9/11 terrorist attacks, made millions once out of office and ran for the Republican presidential nomination in 2008. But he has suffered a precipitous fall. The former mayor faces legal and financial jeopardy on multiple fronts, mostly arising from his central role in Trump’s attempt to overturn his conclusive defeat by Joe Biden in the 2020 election. Indicted on charges related to attempted election subversion in Arizona and Georgia, Giuliani has pleaded not guilty. He filed for bankruptcy protection last December after two Georgia election workers won a $148m defamation verdict against him. The new filing in US bankruptcy court in the southern district of New York was made by attorneys acting for Giuliani creditors, including one of those election workers, Shaye Moss. Attorneys also filed on behalf of Noelle Dunphy – a former associate suing Giuliani for $10m, alleging sexual assault and harassment – and Dominion Voting Systems, which reached a $787.5m settlement with Fox News over its broadcast of Trump’s election lies and also sued Giuliani. The filing formally opposed Giuliani’s attempt to change his chapter 11 bankruptcy proceedings – shielding him from creditors while he ostensibly reorganizes his financial books – into a chapter seven liquidation of assets. Attorneys for his creditors said Giuliani was “playing the delay game”. “He played games with the DC district court [in the defamation case] in continually agreeing to comply with court orders and then failing to do so, and he has been doing the same thing in this chapter 11 case,” the creditors’ attorneys said. “Giuliani’s goal is to continue to avoid responsibility for his malfeasance.” Giuliani was recently disbarred from practicing law in New York. Disbarment proceedings are ongoing in Washington DC. In their New York filing, his creditors’ attorneys said: “The New York supreme court’s decision on Giuliani’s disbarment just as easily could have been written about Giuliani and this bankruptcy case. This chicanery is what he does and who he is.” A spokesperson for Giuliani did not immediately respond to a Guardian request for comment. But the spokesperson, Ted Goodman, told Law & Crime that in seeking to change the contours of his bankruptcy case, Giuliani was “simply following available options to combat an entirely partisan and politically motivated proceeding”.

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