A federal judge has dismissed Rudy Giuliani’s bankruptcy case, slamming the former New York City mayor as a “recalcitrant debtor” who attempted to misuse the process to shield himself from a $148 million defamation judgment and other debts.
U.S. Bankruptcy Judge Sean Lane criticized Giuliani for repeated “uncooperative conduct,” self-dealing, and a lack of transparency. The judge highlighted Giuliani’s failures to comply with court orders, disclose income sources, and hire an accountant to review his finances.
“Such a failure is a clear red flag,” Judge Lane wrote.
The dismissal of the case ends Giuliani’s pursuit of bankruptcy protection but does not absolve him of his debts. Creditors can now pursue other legal remedies to recover the money they are owed, including obtaining court orders to seize his properties and other assets.
Giuliani is now free to appeal the defamation verdict that requires him to pay $148 million in damages. The verdict arises from his efforts to overturn the results of the 2020 presidential election in favor of Donald Trump.
During a hearing on Wednesday, Judge Lane indicated his intention to dismiss the case. Giuliani’s lawyer had considered other options to keep the case alive but ultimately agreed that dismissal was the best course of action. The dismissal includes a 12-month ban on Giuliani filing for bankruptcy protection again.
“Transparency with Mr. Giuliani’s finances has proven to be an elusive goal,” Lane wrote, adding, “he sees no evidence that this will change.”
In his conclusions, Judge Lane noted Giuliani’s attempts to hide his income, including at least $15,000 a month from his canceled talk radio show and properties he owned. Giuliani also failed to report income from these entities, did not pay taxes on profits from promoting his “Rudy Coffee” brand, and was working on a deal to write a book.
