Former New York City mayor, Rudy Giuliani, was spotted in a car passing by a pro-Palestine rally at Columbia University on April 23, 2024.
About a month after a U.S. bankruptcy judge alerted Rudy Giuliani about his upset creditors and their likely harsh actions in the near future, using the words “a warning shot across the bow” to make the point clear, attorneys revealed that “frustrations are reaching a fever pitch.” The recent request by Giuliani
Giuliani asked U.S. Bankruptcy Judge Sean Lane to allow the hire of an attorney and longtime friend so the former New York City mayor could appeal the $146 million defamation judgment won by default by Georgia election workers Ruby Freeman and Shaye Moss due to his “willful shirking of his discovery obligations Giuliani’s Chapter 11 bankruptcy filing followed the defamation loss, but the lingering issue is this: the judge previously modified an automatic stay to allow Giuliani to file a notice of appeal of the Freeman judgment in the D.C. Circuit, but did not allow the pursuit of the appeal itself to move forward. Giuliani has since tried, for a second time, to modify the automatic stay, this time asking Lane to let attorney Kenneth Caruso mount the appeal in earnest, believing the judgment can be significantly or completely reduced. On Tuesday, lawyers for the Official Committee of Unsecured Creditors and attorneys for Freeman and Moss separately filed objections to Giuliani’s request, and it’s clear that tensions are running high. In the Second Stay Relief Motion, the Debtor asks the Court for permission to delay his chapter 11 case without advancing it and continue the Freeman Litigation in the manner he wishes, despite not having participated in any meaningful way for several years before the Petition Date. With no end in sight for any potential appeal of the Freeman Judgment, the Debtor asks his other creditors to sit on their hands while he continually delays his day of reckoning, at their expense, according to the Committee lawyers..”
Instead, the lawyers said, Giuliani has been all but radio silent when it comes to talking with the Committee, refused to “even respond to ordinary course emails about the Debtor’s intent to comply with his statutory obligations or prior representations made to this Court,” and failed to file “monthly operating reports” on time — leaving “his creditors and this Court largely in the dark” about what’s going on.
The Committee finds itself on a hamster wheel trying to hold the Debtor accountable for his recurring and continuous misdeeds, the filing summarized, with the lawyers lamenting that the Committee had to respond a second time to an automatic stay modification request.
The attorneys said that Giuliani's latest attempt at the bankruptcy case is very similar to his first attempt, which they thought was not good enough and should be rejected by the judge.
The objection stated that the Debtor is using the bankruptcy case only to fight the Freeman Judgment, and the rules of the bankruptcy process do not matter to him. The Committee will not remain silent and accuses Giuliani of not taking the bankruptcy matter seriously and acting in bad faith.
The lawyers argued against the idea that appealing the Freeman judgment would be helpful, saying it would only delay the Debtor's exit from chapter 11 and deplete his assets available for distribution to creditors. They believe that is Giuliani’s goal.
Attorneys for Ruby Freeman and her daughter Shaye Moss submitted a filing opposing a modification of the automatic stay, stating that Giuliani’s conduct in the bankruptcy case is a continuation of his conduct in the defamation case.
The objection said that Giuliani has a history of intentionally abusing the civil justice system and has not made any progress in the bankruptcy case since its commencement. They accused him of trying to benefit from the chapter 11 process without fulfilling his obligations.
Giuliani explains to bankruptcy judge why reports are being filed late, saying his accountant quit and no one else will help him.
To date, the Debtor has shown no interest in, among other obligations, (i) advancing his chapter 11 case, (ii) maximizing the value of his estate for the benefit of creditors, (iii) providing complete, accurate and timely financial disclosures, (iv) complying with the rules of the bankruptcy process or (v) engaging productively with his creditors. The playing field here should not be tilted in the Debtor’s favor. The Second Stay Relief Motion should be denied.
The filing made a direct reference to Lane’s warnings to Giuliani and confirmed that creditors have had enough, and that “frustrations are reaching a fever pitch.”
The documents said that Mr. Giuliani's creditors oppose his Motion seeking special permission to pursue an appeal of the Freeman Judgment, stating that the reasons why are the same now as they were then: (a) the Motion is facially insufficient, (b) the relief sought is impermissible as a matter of law, and (c) granting the Motion will stall progress in this chapter 11 case.
Giuliani, for his part on Tuesday,
submitted a reply to attorneys for the people he owes money to
, explaining that recent problems in providing “monthly operating reports” were largely due to his accountant quitting and no one else wanting to take on that responsibility.
“Regrettably, the person the Debtor originally had helping with the reports had a change of heart and no longer wanted to assist,” attorney Heath Berger said. “The Debtor has tried reaching out to several accounting firms and CPAs for help, but no one seems interested in taking on the task.” Describing Giuliani’s reports as “quite simple,” Berger said that his client’s “main source of income is mainly from his social security and whatever little money comes in from his radio show and podcast.”Furthermore, Freeman and Moss’ lawyers reiterated that letting Giuliani appeal was not a sensible way to protect his business interests, specifically because that “political commentary” could end up being more expensive than profitable.
“Additionally, pursuing the appeal is not at all necessary to safeguard Mr. Giuliani’s business, which— if it even exists—is based on his own political commentary,” the filing said, before adding a footnote: “Due to his damaging statements, Mr. Giuliani’s continued business might be generating debts that could surpass any earnings.”
Before Giuliani was
given a temporary relief from being immediately instructed
to sell his million-dollar Florida condo in March, he had argued that he needed the property to podcast from there and make money off of his internet commentary to pay his creditors.
Freeman and Moss, in the opening lines of their objection, said that Giuliani was using his platform to repeat the defamatory statements he was held liable for as recently as April 11: Read the Freeman objection and the Committee lawyers’ filing
About one month after a bankruptcy judge warned Rudy Giuliani his creditors were upset, attorneys revealed that “frustrations are reaching a fever pitch.”
On April 11, 2024, after filing this case, and after being warned by this Court not to continue making defamatory statements, Rudy Giuliani livestreamed a video of himself addressing a crowd in Tulsa, Oklahoma, across multiple platforms, including Twitter/X, YouTube, and Rumble. While sitting in a chair onstage, Mr. Giuliani discusses election night 2020 and Georgia election workers Ruby Freeman and Shaye Moss. Despite having been found liable for approximately $148 million in damages as a result of his previous statements about these women, Mr. Giuliani again made false and defamatory remarks about them. Mr. Giuliani stated “I was sued by two women who were counting multiple ballots in Georgia, we have one of them on tape doing it.” Mr. Giuliani went on and told the crowd, “I can show you [evidence] tonight of them counting the ballots four times, one two one two four times four time four times.”
Read the Freeman objection here and the Committee lawyers’ filing here.