Bankruptcy Judge Considers Trustee for Giuliani’s Financial Affairs

A bankruptcy judge listened to arguments on Monday in Rudy Giuliani’s bankruptcy hearing and is considering the possibility of taking control of America’s mayor’s finances and appointing a watchdog to oversee them.

During the hearing in White Plains, New York, creditors attacked Giuliani, accusing him of various wrongdoings from “dishonesty” and “gross incompetence” to “bankruptcy crimes” in front of U.S. Bankruptcy Judge Sean Lane, as reported by Law & Crime. 

Judge Lane did not make a decision before concluding the hearing but expressed concern stating, “there are reasons to be very concerned here.” A major concern for Lane is Giuliani’s inability to retain a bookkeeper or accountant, which he referred to as a “troubling fact.”

This hearing followed Giuliani’s Chapter 11 bankruptcy filing in December after losing a $148 million defamation lawsuit brought by two Georgia election workers. Lawyers for the creditors urge Lane to appoint a trustee to manage Giuliani’s finances, while Giuliani’s legal team argues the need to appeal the $148 million judgment.

The creditors’ attorneys accused Giuliani of directing funds to his “alter ego LLC” Giuliani Communications, treating his business as a personal asset, which they claim is fraudulent.

They also pointed out Giuliani’s financial mismanagement including “dishonesty,” “incompetence,” “mismanagement,” “lack of proper record-keeping and reporting,” among other financial misconduct.

Rachel Strickland, representing the election workers, told Lane that Giuliani is “shrewd and manipulative” and that his reports are inaccurate, inconsistent, and late, with deadlines often ignored.

Concerning the absence of a bookkeeper and an accountant who resigned, Strickland emphasized the need for proper supervision. Giuliani’s attorney, Gary Fischoff, acknowledged Giuliani’s slow adaptation to financial reporting standards.

The next hearing is scheduled for July 10, with Giuliani appearing via Zoom.