Rudolph W. Giuliani's attempts to overturn the results of the 2020 election have led to him being indicted in two states, suffering $148 million in defamation damages and being forced to file for bankruptcy.
All the while, he had a trusted financial ally: a charity set up in memory of firefighters killed on Sept. 11, 2001. The problem, say lawyers for his creditors, was that he withheld details about it for the first five months of the bankruptcy proceedings.
In a filing last week, Mr. Giuliani's lawyers said one of the former New York mayor's companies, Giuliani Communications, earns about $16,300 a month in revenue from his one-man Internet show, “America's Mayor Live.” Mr. Giuliani's lawyers said the money comes “primarily” from the Stephen Schiller Tunnel to Towers Foundation, a group that supports the Sept. 11 terrorism.
The revelation of Giuliani's source of income comes after months of fierce debate by creditors about Mr. Giuliani's personal finances, much of which they complained was purposely left incomplete and opaque. They only recently learned through social media that Mr. Giuliani had inked a deal to generate revenue from a new brand of coffee products.
The Tunnel to Towers Foundation confirmed that it sponsored both the livestream and Giuliani's now-canceled radio show, though it did not disclose how much it paid in total.
“Since 9/11, Mayor Giuliani has been a tireless supporter of the Tunnel to Towers Foundation, helping to organize the first Tunnel to Towers 5K Run and Walk in New York City in 2002,” the foundation said in a statement. As mayor at the time, Giuliani attended Schiller's funeral. His presence at this and other funerals strengthened his ties with the families of many of the World Trade Center first responders.
Giuliani said he has not received any income from Giuliani Communications, which provided sponsorship revenue for his radio shows and live streams. Attorneys for the creditors said they believe he has “performed pro bono work to the detriment of his creditors, which is a problem in itself, and has diverted creditor funds to his own business and used his business as a personal piggy bank, which is fraud.”
Bankruptcy law doesn't require entities that haven't filed for bankruptcy, like Giuliani's companies, to file business reports. Giuliani must disclose how much he makes from those companies, but he says he receives no compensation from them, although he says he's an employee of Giuliani Communications. But creditor lawyers are asking Giuliani to file reports about the companies and could also ask for his businesses to be merged into his case. They've already asked for a trustee to take over his personal and business finances.
A spokesman for Giuliani said the former mayor was “proud to partner with this charity.”
The Tunnel to Towers Foundation was created to honor New York City firefighter Schiller, who had just finished his shift when the first plane hit the World Trade Center. Seeing that the Brooklyn Battery Tunnel was closed to traffic, he ran through the tunnel on foot into Manhattan.
The foundation has grown into a national organization with revenues approaching $305 million in 2022. It holds fundraisers in New York and across the country. The nonprofit provides housing for families of fallen soldiers, wounded and homeless veterans, and injured first responders, according to the organization. It also produces educational materials about the September 11 attacks.
The charity spent about $30 million on advertising in 2022, the last year for which statistics are available, and also sponsors shows on other stations, including Fox News Channel and New York's WABC radio. Tunnel to Towers previously sponsored Giuliani's WABC radio show, but the network canceled the show last month after he continued to make false claims about the 2020 election.
Giuliani's livestreams are broadcast live on social media networks and replayed the following day on Newsmax. Giuliani typically gives his opinion on recent news, often criticizing President Biden and the Democratic Party. Other ad slots are filled with campaign messages from Donald Trump Jr., Trump ally Roger Stone and Giuliani himself promoting a new coffee brand.
During a recent livestream, Giuliani spoke about President Biden's foreign policy decisions and then spoke briefly about the Tunnel to Towers Foundation.
“The Foundation has helped over 1,000 military and first responder families get through their darkest hours by easing the burden of their mortgage payments. Our nation's heroes and their families need your help now more than ever,” Giuliani said. “Donate $11 a month to Tunnel to Towers at t2t.org.”
While nonprofit charities are prohibited from campaigning, charity experts say simply running ads in programs that espouse political views does not violate such rules.
Giuliani was supposed to disclose all of his income months ago as part of his bankruptcy proceedings, but he did not disclose his company's revenue from his radio show and live streams until recently, after being questioned by creditor lawyers.
Giuliani's regular reports on his spending are incomplete and confusing. He has repeatedly said his only sources of income are his Social Security benefits and his radio show and podcast. But his monthly reports don't list any compensation or salary. The reports show his expenses exceed his monthly income, and his cash balance at the end of the month often doesn't match his balance at the beginning of the next month.
“His financial reporting and record-keeping are abysmal, he confuses his personal matters with those of his sham companies,” the creditors' lawyers said in a recent filing, “and the debtors cannot find a single accountant to work for him.”
The creditors' lawyers learned about Giuliani's new coffee business, “Rudy Coffee,” on social media and asked for, and the lawyers provided, a copy of the contract, which states Giuliani will receive 80% of the net profits.
The coffee, which has his face printed on the bag, sells for $29.99 for two pounds. In an ad that plays during the livestream, Giuliani said proceeds from the sale of the coffee will benefit another nonprofit, Call to Action, which he said is “dedicated to helping veterans and first responders, so you can make a difference and taste the difference.”
It's unclear what nonprofit he's referring to; the organization, Call 2 Action, is not on the Internal Revenue Service's list of tax-exempt charities. A QR code on the coffee bag leads to a website, www.call2action.com, but that's not a charity; it's a social media marketing website.
Rudy Coffee did not respond to messages sent through its website seeking more information about the nonprofit. Giuliani spokesman Ted Goodman also did not respond to questions about the charity.
Seamus Hughes Contributed report.
