Chaos reigned during Rudy Giuliani’s bankruptcy hearing because the former New York City mayor interrupted the court. This happened after a lawyer for his creditors said she would consider seeking prison time for his alleged “bankruptcy crimes.”
As the lawyer Rachel Strickland spoke, Rudy Giuliani showed his displeasure. He even resorted to yelling until his mic was muted during the hearing. The judge will make a decision soon, and we will know where he’s leaning.
Rudy Giuliani Disrupted the Court
Strickland is the legal representative of the two election workers Giuliani defamed and now owes $148m. In a recent hearing, she tried to get the Chapter 11 bankruptcy case dismissed. She said Giuliani might get a “hall pass” if the case was not dismissed.
She cited his pattern of filing late and inaccurate financial reports to substantiate her claim. Strickland went on to suggest that Giuliani had committed “bankruptcy crimes.” She also said she would seek jail time instead of financial repercussions.
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Rudy Giuliani was on the call at the time, and he interrupted the conversation, yelling, “Would someone get them on the phone?” “Your honor, this is Rudolph Giuliani,” he told the judge before saying that Strickland’s comments were “highly defamatory, your honor.”
Giuliani also requested a break, but the judge said he would have to wait until after Strickland’s presentation ended. The judge said: “Sir, everybody gets a chance to be heard, but you cannot interrupt someone else while they’re being heard.” He then threatened to “cut his line off” if he didn’t stop talking.
Later in the hearing, Giuliani’s lawyer Gary Fischoff said. “There were some statements that the debtor was going to commit bankruptcy crimes…Giuliani would not be committing any bankruptcy crimes.” Afterward, Strickland filed a motion on July 8 in favor of the dismissal of the case.
Rudy Giuliani Changed His Tune
Rudy Giuliani reportedly initially requested that the case be converted from a Chapter 11, which would see his assets reorganized, to a Chapter 7, which would see his assets liquidated. However, he changed his mind less than an hour before Wednesday’s hearing, and his legal team signaled support for the dismissal plan.
Fischoff argued during the hearing that a dismissal was the best option for his client. This is because even though the election workers already have a judgment, other creditors’ cases are ongoing.
Fischoff said a dismissal would mean those other creditors would be “free to pursue” their cases in court since it would lift the stay on the ongoing cases against Giuliani. However, Phil Dublin, a lawyer for the creditors’ committee, reportedly prefers to appoint a Chapter 11 trustee rather than dismiss the case.
Dublin argued that appointing a trustee would result in the “most equitable outcome” for the creditors. If it remains a Chapter 11 case, investigations into Giuliani’s finances would be permitted. This would shed more light on the alleged unpaid $2 million in legal fees owed by Donald Trump, the Trump campaign, and the Republican National Committee.
Giuliani’s lawyer argued that his assets would still be available to creditors. Fischoff said his only source of income is social service payments. The lawyer also shared that he’s “an 80-year-old disbarred attorney who may choose to discontinue working” should a Chapter 11 trustee be appointed.
Strickland on Why a Trustee Should Not Be Appointed
Strickland capitalized on Rudy Giuliani’s lawyer’s admission. She said: “We all suspect that if a trustee is appointed, Giuliani is going to sit on his butt.”
She added that if the former mayor is working for himself, “I suspect he will be hustling for Rudy Coffee and all the rest of his money-making endeavors” while funneling cash to all the businesses that he claims are out of the reach of creditors.
As far as she is concerned, Giuliani sees the court as “a pause button on his woes.” And while things are on hold, he continues to live his life.
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The Judgment
The judge has said he hopes to rule on the matter before the end of the week. However, he also revealed that he is “leaning toward dismissal.” The judge said: “I’m concerned that what’s past is prologue…and that issues about transparency will continue.”
The creditors’ committee has complained in filings about Giuliani’s lack of transparency in his finances and his “deficiencies in his financial reporting and disclosures.” Examples include discrepancies related to payments on his Florida condo and “unauthorized payments” to his alleged “girlfriend.”
There is also his refusal to comply with discovery requests. His failure to comply with those requests led the committee to ask on June 28 that the court hold Giuliani in contempt and impose sanctions.
In a July 8 filing, the committee’s lawyers also accused him of treating “the bankruptcy process as a joke, hiding behind the façade of an elderly, doddering man.”
Is Giuliani Broke?
Giuliani’s current net worth could be less than $50 million. This would make sense. After all, his attorney has said that the damages sought by the two election workers would “be the end” of him. Over a decade ago, Giuliani’s net worth was over $50 million.
Reports claim $15 million of that total came from his business, including his work with the lobbying firm Giuliani Partners. However, things have seemingly changed for the worse for the embattled attorney.
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