Former New York Mayor Rudy Giuliani speaks to the media as he departs from his defamation trial in Washington on Friday, Dec. 15, 2023. (AP Photo/Jose Luis Magana, File)
According to a new bankruptcy filing, Rudy Giuliani's accountant has recently quit, and he is personally handling the mandatory operating reports in his bankruptcy case, which explains the delay in filing some reports.
In late April, attorney Gary Fischoff requested U.S. Bankruptcy Judge Sean Lane to modify a stay issued in February to allow Giuliani to appeal the $148 million defamation verdict against former Georgia election workers Ruby Freeman and Wandrea' 'Shaye' Moss.
In an early Tuesday filing , a group of Giuliani's creditors opposed the stay, citing delinquent financial reports for February and March, which were filed 42 days and 15 days late, among other alleged misconduct.
Giuliani's attorney Heath Berger explained in a late Tuesday responsethat the original accountant had a change of heart and no other accounting firms or CPA's seem willing to take on the task.
Giuliani argues that the appeal is crucial for his bankruptcy case and could benefit other creditors if he wins against Freeman and Moss, as it would make more funds available to satisfy them.
However, the Official Committee of Unsecured Creditors dismisses this argument.
Creditors' filing suggests that Giuliani's pursuit of the appeal is not genuinely for the benefit of other creditors, as he has had minimal communication with the Committee and has neglected to fulfill various obligations and deadlines.
The motion contends that Giuliani's lack of response to emails and failure to meet obligations shows he is not serious about aiding his other creditors.
Furthermore, the creditors claim that this behavior is a repetition of past delaying tactics.
The Committee expresses frustration with Giuliani's continuous misdeeds and describes the second motion as a nearly identical repetition of the first, displaying a lack of effort.
The motion argues that Giuliani's attempt to move forward with his appeal is an abuse of the bankruptcy process, allowing him to benefit while ignoring his obligations as a debtor.
Creditors' motion points out potential red flags in the process, including belatedly filed reports and unauthorized payments to his accountant, raising questions about his expenses and financial issues.
The creditors suggest that Giuliani, formerly known as hizzoner.
The filing continues to assert that Giuliani is using the bankruptcy case to fight the Freeman Judgment and is not cooperating with creditors, repeatedly filing inadequate pleadings and wasting time.
The creditors accuse Giuliani of causing procedural delays in each case, allowing him to spend money freely and avoid paying his debts through a series of maneuvers.
The unsecured creditors express surprise at Giuliani's request for automatic stay, despite previous instructions to avoid surprising developments related to the defamation verdict appeal.
The motion accuses Giuliani of not advancing his bankruptcy case while pursuing the Freeman Litigation, continuously delaying his accountability at the expense of other creditors.
Freeman and Moss opposed parts of Giuliani’s stay request in their own motion on Tuesday. Freeman and Moss filed their own motion on Tuesday, asking the court to rule on the issue due to the potential for continued delay. Freeman and Moss urged the court to rule on the issue to prevent the debtor from using the appeal prospect as a basis for further delay.