On Friday, a New York bankruptcy judge denied Rudy Giuliani’s petition for bankruptcy protection, declaring that the former President Donald Trump’s attorney had failed to turn over essential financial documents despite several directions.
Judge Sean Lane’s judgment allows two former Georgia election workers who were repeatedly defamed by Giuliani during the 2020 election to begin collecting on their $146 million award against him.
Giuliani filed for bankruptcy in December, just days after a jury awarded Ruby Freeman and her daughter Wandrea “Shaye” Moss about $150 million for bogus claims of election fraud he leveled against them.
Giuliani’s bankruptcy declaration allowed him to seek protection from creditors under federal bankruptcy law’s “automatic stay,” which, with limited exceptions, halts both ongoing litigation and the enforcement of pre-existing judgments.
Giuliani had previously been found guilty of defaming Freeman and Moss after repeatedly defying court orders in that case, and Lane stated in his 22-page ruling Friday that the former New York City mayor also ignored court instructions in the bankruptcy case. Lane claimed that Giuliani had failed to provide practically all relevant information concerning his firms. The judge noted that the information he did provide concerning his spending and income was frequently incorrect or inadequate.
“Every single monthly operating report filed by Mr. Giuliani has been untimely,” Lane complained. “Perhaps more worrying, the information in the monthly operations reports has been incomplete or incorrect. For example, the monthly operational report for February 2024 includes bank statements from the incorrect year, February 2023.
“The monthly operating reports also appear to contain errors as none of the end-of-month cash balances match the opening cash balance for the following month,” according to the judge.
The judge also highlighted that Giuliani did not disclose information regarding a book contract or a coffee sponsorship arrangement.
“The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-dealing,” Lane stated in an email. Giuliani also stated that he “received no income other than his social security benefits even though he receives compensation” from other sources, including “between $100,000 and $150,000 from his work hosting a podcast called America’s Mayor Live.”
Without the intervention of an appeals court, the bankruptcy case concludes, allowing Freeman and Moss to pursue Giuliani’s assets, including his homes and bank accounts.
Another option for Freeman and Moss would be to accept Giuliani’s allegations that Trump and the Republican National Committee owe him $2 million for their work challenging the 2020 election results, and perhaps sue those institutions directly.
A source familiar with the situation stated that Freeman and Moss will “pursue all available avenues” to get their claims resolved.
Rachel Strickland, the mother and daughter’s main bankruptcy attorney, stated on Friday that Giuliani filed his petition “in bad faith” and “tried to game the legal system and further harm Ruby and Shaye.”
“Judge Lane saw through Giuliani’s methods and dismissed the case. As a result, Ruby and Shaye can begin to use their judgment and hold Rudy accountable for his vicious lies,” Strickland stated.
Giuliani’s spokesperson, Ted Goodman, stated that the “bankruptcy case was burdened with many of the same voluminous and overly broad discover requests and other actions — including regular leaks of information — intended to harm the mayor and destroy his businesses,” and that he had been denied the right to appeal the defamation judgment while the proceeding was pending.
The judge’s decision comes at a difficult time for Giuliani, a former federal prosecutor.
WABC radio suspended and canceled Giuliani’s show in May after he continued to make misleading comments regarding the 2020 election, potentially exposing the station to legal risk. He was disbarred in New York this month for election fraud, and his law license in Washington, D.C., is also at risk NBC stated.
Giuliani has also been charged with election fraud in Georgia and Arizona, and he is an unindicted co-conspirator in special counsel Jack Smith’s federal election meddling investigation against Trump. He has pled not guilty and denies all wrongdoing.