The judge overseeing Rudy Giuliani’s bankruptcy case decided not to make an immediate decision on whether the former New York City mayor should sell his million-dollar Florida condo. However, the judge also issued a stern warning, indicating that there may be more challenges ahead for Giuliani.
In his plea to U.S. Bankruptcy Judge Sean Lane, Giuliani requested that he not be compelled to sell his condo while he appeals the $148 million defamation judgment against him by Georgia election workers. Giuliani firmly believes that the judgment is fundamentally flawed and has expressed skepticism regarding the extent of damages suffered by Ruby Freeman and Shaye Moss.
According to Giuliani, being forced to sell the Florida condo at this time would result in irreparable harm for him. He believes that the judgment against him may be significantly reduced on appeal, and selling the condo now would prevent him from potentially benefiting from this outcome. Giuliani also mentioned that he has already agreed to sell his Manhattan property and is actively working to increase his broadcast income. He intends to utilize the Florida condo to generate additional revenue, which would ultimately benefit his creditors.
According to Reuters, Lane did not force Giuliani to sell the Florida property. However, the bankruptcy judge issued a warning, suggesting that the lawyers representing the Official Committee of Unsecured Creditors could potentially come down on Giuliani with severe consequences.
According to reports, the judge cautioned that even if the debtor successfully defends against this motion, there may be more severe requests for relief in the future. This suggests that Giuliani’s assets could be pursued through alternative avenues. The Associated Press stated that the committee might consider appointing a Chapter 11 bankruptcy trustee, who would take charge of managing the debtor’s affairs and making decisions regarding Giuliani’s property. Furthermore, this trustee would have the authority to propose a plan for reorganization.
The judge reportedly delivered a stern message to Giuliani, referring to it as a warning shot across the bow. The judge emphasized the need for Giuliani to promptly provide a thorough clarification regarding his financial status.
It seems that the judge’s warnings about the committee appointed to represent those whom Giuliani owes have gained some support. The court’s decision to not immediately rule on the Florida condo issue can be seen as a temporary victory for Giuliani. However, it is expected that the committee will adopt an assertive stance in the future.
In early March, the committee expressed their frustration with the delay tactics and informed the judge about their pursuit of documents related to the legal services provided by Giuliani to former President Donald Trump. The committee further demanded that Giuliani and his allies, including his son Andrew Giuliani, be subjected to a deposition. They specifically requested documents and communications that would reveal Giuliani’s earnings from various media appearances, such as cable TV and radio, as well as his podcasts Common Sense (distributed through YouTube, Rumble, and Spike), Uncovering the Truth, and The Rudy Giuliani Show. Additionally, they sought information on his earnings from America’s Mayor Live streaming on platforms like Instagram, Facebook, Gettr, and YouTube.
The lawyers representing the creditors expressed their concerns about Giuliani’s past behavior, citing his tendency to obscure financial information and engage in misconduct during the discovery process. They pointed to a previous case involving a man named Freeman, where Giuliani’s actions contributed to the initiation of bankruptcy proceedings. The lawyers argued that Giuliani’s asset disclosures were either incomplete or inconsistent, citing issues such as vagueness and discrepancies in valuation, including those related to his New York Yankees World Series rings.
The committee has expressed their dissatisfaction with Giuliani and his counsel’s response to their requests for documents and information regarding Giuliani’s assets and financial condition. They believe that Giuliani’s financial disclosures in the Chapter 11 Case have been inadequate so far.
