Besieged by creditors and with his income drying up, Rudolph W. Giuliani launched a kind of austerity program in federal bankruptcy court in January.
In a court filing, he said he plans to stick to a $43,000 monthly budget, roughly equal to his income from retirement accounts and Social Security. The amount would cover $5,000 in alimony for his ex-wife Judith Giuliani, $1,050 in groceries and household items, and $425 in “personal care products and services,” among other expenses. Become. He was also obligated to cover his $13,500 in monthly nursing home expenses for his ex-mother-in-law. She passed away in March.
He budgeted nothing for entertainment, clubs or subscriptions, suggesting he was mindful of the $153 million he owes creditors, including two Georgia election officials he vilified after the 2020 election. Not yet.
It didn't take long for him to exhaust his budget. In a separate bankruptcy filing, he said he actually spent nearly $120,000 in January. The accounting of expenditures he submitted to the court was incomplete and incomplete. He then provided further information to his creditors' lawyers, including 60 transactions on Amazon, multiple entertainment subscriptions, various Apple services and products, Uber rides, and a business partner's personal credit card bill. It listed some payments, etc.
It's unclear whether he has cut spending to within budget in the months since January because he hasn't filed the required disclosures in bankruptcy court. But his spending sprees and the inability or unwillingness of a bankruptcy court to take a closer look at his finances have left creditors suspicious and angry.
“These unnecessary court filings are just one part of a larger effort to bully and intimidate the mayor through legal action and a public smear campaign,” Giuliani spokesman Ted Goodman said in a statement. Stated.
Giuliani, a former New York City mayor and former President Donald J. Trump's personal attorney, was ordered by a federal judge to pay $148 million to two Georgia election officials accusing them of fraud. As a result, the company filed for bankruptcy in December. The result was favorable to President Biden. (Mr. Giuliani plans to appeal the ruling.)
His filing includes an Upper East Side apartment that went on the market for $6.5 million last year and is scheduled to go on the market and relist this winter, as well as his Palm Beach, Fla., apartment. Assets are listed at $11 million, including condominiums. He valued it at $3.5 million.
Four months into the bankruptcy process, Mr. Giuliani's financial disclosures remain incomplete, inaccurate and, in some cases, completely absent. His creditors are seeking more details and explanations, hiring a forensic accounting firm and requesting extensive information to determine if he is hiding money or assets.
Lawyers for creditors have recently issued a slew of subpoenas seeking documents, communications and information from Mr. Giuliani, people who work or have worked for him, and even his son.
Every penny in Mr. Giuliani's pocket means more payments to creditors, even if it's far less than what he actually owes.
That's why Mr. Giuliani is seeking to collect the $2 million he says he is owed in legal fees from Mr. Trump, who led the effort to overturn the 2020 election results.
Mr. Giuliani lived a fairly frugal life during his time as a riot prosecutor and as mayor.
“Giuliani and the money is a story in itself,” said Andrew Kurtzman, who has written two books about the former mayor. “It starts with him living a very unassuming life.”
These days, Mr. Giuliani makes about $550,000 a year from dwindling retirement accounts and Social Security payments. His creditors want him to sell his properties in New York and Florida. But Giuliani recently told a bankruptcy court that he wants to keep his Florida condo and live there, suggesting his creditors don't want him to become homeless.
His creditors are skeptical.
“It hardly seems worth pointing out that there are a vast array of housing options available between living in a Palm Beach condo costing approximately $3.5 million and being homeless,” the creditor said. 's attorney said in a court filing.
His creditors also don't believe he's being honest about the assets he discloses.
For example, Giuliani lists privately held shares in the ride-hailing service Uber among his assets. He declared he owned $30,000 worth of jewelry, including three New York Yankees World Series rings, which creditors say are worth about $15,000 each. It is estimated that there is.
He also did not disclose a publishing deal for his upcoming book, “Biden Crime Family.”
Bruce A. Markel, a bankruptcy law professor at Northwestern University's Pritzker School of Law, said based on creditors' actions so far, “as my mother would say, they don't trust Giuliani enough to throw him out.” he said. Former bankruptcy court.
His January spending report was incomplete, listing 20 charges to his American Express card but without details. Lawyers for the creditors say he provided a more detailed explanation, but it was not publicly submitted to the court because details are typically missing. And as of April 26, Mr. Giuliani had not released details about January's Discover Card bill. The U.S. trustee in charge of his case did not respond to questions about why additional details were not publicly presented in court.
Shay Moss, one of the two Georgia election officials he vilified, was chosen by Giuliani's creditors to serve on a three-person committee representing creditors' interests throughout the bankruptcy case. It was.
Other committee members include Noel Dunphy, a former employee who claims Giuliani harassed and assaulted him starting in early 2019. Lindsey Kurtz, general counsel for Dominion Voting Systems, one of the nation's largest voting machine vendors, accused Giuliani of spreading falsehoods about voting machines after the 2020 election.
“The Commission does not intend to push debtors and creditors off a cliff,” the lawyers said in a recent motion.
Mr. Giuliani entered bankruptcy proceedings with a poor track record of responding to discovery requests. Last year, a federal judge told a jury that he intentionally withheld financial information to protect his assets and make his net worth appear lower.
According to Professor Markel, in the case of bankruptcy, a debtor is obliged to disclose all assets so that creditors can understand the transactions they are making with their property. Incomplete filings or failure to provide requested materials may result in the case being dismissed and terminated, and the debtor may be subject to foreclosure or repossession.
“The more backlash and ignorance about the ability to comply, especially from someone like Mr. Giuliani, who is a lawyer, the more concerned there is that something is actually being hidden,” he said.
Mr. Giuliani missed the deadline to submit spending reports for February and March. A few weeks ago, one of Mr. Giuliani's lawyers, Gary C. Fischoff, said some applications had been delayed “because the accountant got angry and resigned at one point.”
“He calmed down,” the lawyer added, “and we persuaded him to continue with the case.” Mr. Giuliani's accountants did not respond to requests for comment.
Creditors said Mr. Giuliani's lack of response “makes us wonder what he is hiding.”
Bankruptcy law allows creditors to obtain older information from debtors and their associates. Giuliani's creditors asked the court to use the wide-ranging discovery request to obtain details about his finances dating back to 2019 and information from his associates.
The request could reveal details about Mr. Giuliani's overseas activities, which have been under intense scrutiny by the FBI, but the forensic accounting team hired by the creditors revealed that he has been involved in activities in Ukraine, Turkey and Venezuela. The group is made up of former intelligence officials with experience in countries where Mr. Giuliani did business. And Qatar.
Mr. Giuliani's age poses unique challenges for creditors to get paid.
His situation is different from that of Alex Jones, 50, of the bankrupt conspiracy broadcaster Infowars. Depending on the outcome of future bankruptcy negotiations, Mr. Jones could spend decades trying to pay millions of dollars in damages to families who spread lies about the victims of the Sandy Hook shooting.Mr. Giuliani turns 80 in May, but his future earning potential is hampered by the suspension of his law licenses in New York and Washington, D.C.
Financial statements he filed in court show he is losing money on profitable businesses such as his WABC radio show in New York.
Mr. Giuliani continues to need lawyers in and out of bankruptcy court and faces additional lawsuits, including criminal charges in Georgia over his efforts to overturn the state's 2020 election results. And he was recently indicted in Arizona, where others are also accused of trying to change the outcome of 2020.
Friends have established two legal defense funds. One is a political action committee whose donors include Elizabeth Ailes, wife of the late media mogul Roger E. Ailes. Arnold Gamowitz, New York real estate developer. and James Riotau, founder of the sandwich chain Jimmy John's. Another donor is Matthew Martorano, a Puerto Rico-based businessman and defendant in a federal fraud case.
Another foundation, the Rudy Giuliani Freedom Fund, does not disclose its donors or the amount raised.
As of late January, Mr. Giuliani had withdrawn more than $1.2 million from two funds to pay his lawyers, according to court filings. The total amount raised from both funds has not been disclosed.
Lawyers for his creditors have issued subpoenas seeking the names and receipts of donors to his defense fund.