By Rudy Giuliani’s bankruptcy case has hit a snag as creditors and a judge express growing concerns over his apparent stonewalling and questionable financial dealings. The U.S. Trustee’s office, a Justice Department watchdog overseeing bankruptcy cases, warned on Monday that the government may dismiss or convert his case, potentially jeopardizing his ability to seek protection over his assets.
Creditors have accused Giuliani of hiding assets and entering business deals that divert income to his businesses instead of his estate. They have asked U.S. Bankruptcy Judge Sean Lane to appoint an independent trustee to manage Giuliani’s finances, citing his “preference for delay, diversion and theatrics over progress, rehabilitation and maximization of value for his creditors.”
Giuliani’s bankruptcy filings have been riddled with inconsistencies and omissions, raising red flags among creditors and the court. His reported spending exceeds his stated income, and his cash balances at the end of one month often contradict those at the beginning of the next.
The former New York City mayor filed for bankruptcy in December after being ordered to pay $148 million to two Georgia election workers, Ruby Freeman and Wandrea “Shaye” Moss, whom he defamed with baseless allegations of election fraud in the 2020 presidential election.
Giuliani Agrees to Stop Spreading Lies About Georgia Election Workers
In a related development, Giuliani has agreed to a permanent injunction barring him from making any statements suggesting that Freeman and Moss engaged in wrongdoing during the 2020 election. The agreement, filed in federal bankruptcy court on Tuesday, comes after a jury awarded the mother and daughter $148 million in damages for defamation.
The women’s attorney, Michael J. Gottlieb, hailed the injunction as an end to Giuliani’s “efforts to profit off of lies about these two heroes of American democracy.” However, Giuliani’s spokesperson indicated that while he will refrain from commenting on Freeman and Moss specifically, he will continue to make broader claims about the 2020 election being rigged against former President Donald Trump.
Giuliani’s Law License in Jeopardy as D.C. Board Recommends Disbarment
Giuliani’s legal troubles extend beyond his bankruptcy case, as the D.C. Board on Professional Responsibility recommended on Friday that he be disbarred for his role in a lawsuit challenging Pennsylvania’s 2020 presidential election results. The board found that Giuliani sought to disenfranchise hundreds of thousands of Pennsylvania voters without any factual basis.
The recommendation is the final step before the D.C. Court of Appeals decides whether to revoke Giuliani’s law license in Washington. He is already suspended from practicing law in New York due to his involvement in efforts to overturn the 2020 election.
Giuliani’s spokesperson called the recommendation “anti-American” and claimed it was meant to discourage lawyers from representing clients like Trump who challenge the political establishment.
As Giuliani’s legal and financial woes mount, he faces an uphill battle to protect his assets and salvage his reputation. The outcome of his bankruptcy case and disciplinary proceedings will have significant implications for his future prospects.
MSNBC
