Rudy Giuliani’s bankruptcy filing was dismissed on Friday, clearing the way for two campaign staffers to begin collecting on the $148 million judgment they won against him in a defamation lawsuit.
Judge Shawn Lane ruled that it was in the best interest of Giuliani’s creditors to dismiss the lawsuit with a one-year ban on him refiling it.
“The record in this case reflects that Mr. Giuliani failed to meet his reporting obligations and provide the financial transparency required of debtor-possessors,” Judge Lane wrote in his decision.
“It is unfair and unwise to make creditors wait years while being prevented from pursuing their rights and receiving only a small dividend at best,” Lane added.
Collection efforts against Giuliani have been suspended due to his bankruptcy proceedings.
The ruling marks a victory for Ruby Freeman and Shay Moss, who worked as election workers in Georgia during the 2020 presidential election, and won $148 million in damages against the former New York City mayor for defamation and other charges after Giuliani spread false accusations against them over unfounded claims of election fraud.
Campaign staff and Giuliani’s response
In a statement to USA Today after Friday’s sentencing, Freeman and Moss’ attorney, Rachel Strickland, said they would begin serving the sentence against him “as soon as possible.”
“I am pleased that the Supreme Court saw through Mr. Giuliani’s scheme and put a stop to his abuse of the bankruptcy process,” Strickland said.
Giuliani’s bankruptcy proceedings halted his right to appeal his claim for $148 in damages from the law firm Freeman & Moss. The dismissal, for which Giuliani filed a motion to agree on Wednesday, allows him to continue his appeal. One of his lawyers, Gary Fishoff, reaffirmed Giuliani’s position in a statement to USA Today on Friday.
“We believe the court erroneously adopted the creditors’ position on the facts of the case, but reached the correct conclusion by dismissing the case,” Fishoff said.
Judge criticizes Giuliani for lack of financial disclosure
In his ruling on Friday, Lane offered a lengthy critique of Giuliani’s activities, or lack thereof, in the bankruptcy case, finding that Giuliani’s entities had violated requirements by not filing records and that Giuliani himself had not met his obligations to provide details of his financial situation, including his creditors, assets, liabilities and current income and expenses.
“The lack of financial transparency is particularly troubling,” Lane said.
Lane said Giuliani was making at least $15,000 a month as a radio show host and $100,000 to $150,000 as a podcast host, but diverted the money to his own entities, from which he received no income, according to his monthly business reports. Giuliani’s radio show, which aired on New York’s WABC, was suspended in May after he repeatedly ignored warnings not to make false claims about the 2020 election on air.
“Mr. Giuliani argues that conducting business through separate limited liability companies is ‘customary’ and not wrongdoing,” Lane wrote, “but since Mr. Giuliani has provided no information about these financial arrangements, it is impossible to assess their validity.”
