Rudy Giuliani ridiculed as judge dismisses his bankruptcy case citing 'lack of financial transparency'

MANHATTAN, NEW YORK: A New York judge dismissed Rudy Giuliani's bankruptcy case on Friday, July 12, citing his repeated evasiveness about his assets.

Federal bankruptcy judge Sean Lane ruled in favor of two former Georgia election workers, who the former New York City mayor owes $148 million for defaming them after the 2020 election, stating that his Chapter 11 case should be dismissed.

"The lack of financial transparency is particularly troubling given concerns that Mr Giuliani has engaged in self-dealing and that he has potential conflicts of interest that would hamper the administration of his bankruptcy case," noted Judge Lane in his 22-page decision.

Judge Sean Lane said Rudy Giuliani withheld key financial information

Judge Sean Lane claimed that Rudy Giuliani withheld the fact that he had signed a book deal at first, neglected to provide any financial information about his companies, and failed to accurately and completely submit monthly reports, as per the New York Post.

A number of creditors, among them Ruby Freeman and her daughter Shay Moss, the two Fulton County Georgia election workers Giuliani defamed, have maintained that he has been concealing assets, filing erroneous reports, and engaging in extravagant spending.

"This lack of transparency— apparently even to Mr Giuliani’s own counsel — raises significant concerns about Mr Giuliani’s ability and willingness to manage the bankruptcy estate in the best interest of his creditors," wrote Judge Lane. 

In the words of Lane, Giuliani's agreement with a coffee company was only made known to his lawyers and creditors through media reports. Furthermore, the judge claimed that the scant information he has provided is rife with "deficiencies."

According to him, debtors typically make an effort to comply, if only in part, when they are accused of breaking bankruptcy laws and concealing money. "By contrast, Mr Giuliani has done nothing," charged the judge.

Shay Moss and Ruby Freeman's attorneys argued that Rudy Giuliani's bankruptcy case should be dismissed

While Shay Moss and Ruby Freeman's attorneys contended during a hearing on Wednesday that the case ought to be dismissed for them to attempt to recover their money through alternative means, like obtaining a court order to seize his assets, a committee representing Rudy Giuliani's other creditors wanted the case to proceed with an appointed trustee who would take control of the former mayor's finances.

Gary Fischoff, the attorney for Giuliani, even concurred that terminating the case might be the best course of action because it would enable his client to begin an appeal of the $148 million judgment.

However, Judge Lane determined it was in the best interest of everyone involved to end Giuliani's case. 

Had the case continued with a trustee, it would have resulted in little to no money being received by creditors because the cost of the legal defense would have undoubtedly consumed any proceeds acquired from Giuliani.

"Forcing creditors to wait years while they are prevented from pursuing their rights for, at best, a modest distribution seems inequitable and ill-advised," wrote the judge.

Judge Lane's ruling prohibits Giuliani from declaring bankruptcy for a year, giving creditors time to pursue the enforcement of judgments or the resolution of ongoing cases.

During the Wednesday hearing, Rachel Strickland, the attorney for Moss and Freeman, contended that Giuliani had been abusing bankruptcy to maintain his normalcy.

"He regards this court as a pause button on his woes while he continues to live his life unbothered by creditors," said Strickland.

Strickland argued that a trustee would incur significant costs, which would reduce any money they manage to obtain from Giuliani. In his ruling, Judge Lane mentioned that the committee of debtors had already acquired a $400,000 bill from a financial advisor.

Giuliani continues to face nine lawsuits, many of which "have a right to a jury trial," according to the judge, and would be "better resolved outside the bankruptcy forum."

In his ruling, the judge also brought up Giuliani's attorney's admission that the former mayor might stop working if a trustee was appointed to his case.

Rudy Giuliani declared bankruptcy following the $148 million defamation ruling

The 80-year-old Giuliani declared bankruptcy in December, just a few weeks after Freeman and Moss secured the historic victory. Strickland informed The Post on Friday that her clients intend to pursue immediate enforcement of their judgment.

"Freeman and Moss have already waited too long for justice. We are pleased the Court saw through Mr Giuliani’s games and put a stop to his abuse of the bankruptcy process," said the lawyer. 

Giuliani's political advisor, Ted Goodman, told the outlet that it was unjust that Giuliani was denied his request to waive a pause on litigation, which is automatically triggered with bankruptcy cases, so he could appeal the Freeman and Moss judgment.

"This whole bankruptcy case was burdened with many of the same voluminous and overly broad discovery requests and other actions — including regular leaks of information — intended to harm the mayor and destroy his businesses," mentioned Goodman.

Earlier this month, the troubled veteran attorney was stripped of his New York legal license for spreading lies about the 2020 election while he was working for President Donald Trump. 

In May, WABC Radio dropped Giuliani as he refused to avoid talking about "fallacies of the November 2020 election" despite repeated warnings. 

Giuliani has also been charged in Arizona and Georgia for allegedly trying to intervene in the 2020 election on Trump’s behalf.

He has pleaded not guilty to the charges.

Internet reacts as judge dismissed Rudy Giuliani's bankruptcy case

Soon after the news of Giuliani's bankruptcy case being dismissed came to light, netizens shared their thoughts about his ongoing woes, with many resorting to mocking the former NYC mayor. 

A Facebook user wrote, "Mob tactics won't work, Rudy," and another said, "He made his bed…Let him lay in it!" 

"Gonna be hell to pay. He shot himself in the foot once again," remarked a person. "This is ridiculous!!! Republicans ARE the reason this country is in debt!!!!" claimed someone else. 

One more dubbed Giuliani "despicable," wile another person suggested, "Make Trump pay for it. He got you into this mess." 

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.