06/14/2024

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Rudy Giuliani

‘The Debtor’s ‘trust but verify’ window has closed’: Bankruptcy creditors rip Giuliani over ‘disturbing pattern’ of reporting no income

Rudy Giuliani (AP Photo/Jose Luis Magana)

Attorneys representing Rudy Giuliani’s creditors in his bankruptcy case on Monday continued to excoriate him for appearing to provide false, inaccurate, and incomplete information in financial filings. In a letter to the court, Giuliani’s creditors said that the documents provided by him revealed a “disturbing pattern” in which the former New York City mayor’s solely-owned company seemed to be raking in tens of thousands of dollars each month while he continues to report no income.

The letter was penned by counsel for the Official Committee of Unsecured Creditors, which was updating the court on Giuliani’s required Monthly Operating Reports. Noting that Giuliani’s February and March reports were both filed late and were riddled with “mistakes and inaccuracies,” the Committee is claiming that Giuliani’s more recent disclosures have raised more questions than they’ve answered.

The committee represents defamed Georgia election worker Shaye Moss, Dominion Voting Systems — the voting technology company Giuliani insisted must have rigged the 2020 election in favor of President Joe Biden — and Noelle Dunphy, a former Giuliani employee who sued and accused him of sexual assault, harassment, and fostering a hostile work environment while not paying her for her work.

As the committee brought up during a May 14 hearing in the case, Giuliani has “never reported income on his monthly operating reports,” despite other filings in the case clearly showing that he was making money from his now-cancelled talk radio show and podcasts. Giuliani’s attorney on May 22 sent a letter to the committee describing Giuliani’s income, which the committee said only raised more red flags.

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    “This letter, however, only raised further questions and concerns, as it revealed a disturbing pattern where (Giuliani) earns tens of thousands of dollars each month from his radio and podcasting efforts, all of which gets paid to his wholly-owned business, Giuliani Communications,” the committee wrote in the letter. “Yet, ‘(Giuliani) has not received any compensation from Giuliani Communications as the income is used to pay expenses of the company.’”

    According to the committee, this explanation makes no sense, as other reports submitted by Giuliani show that the total annual expenses for Giuliani Communications in 2023 was only $70,000, which is “less than three months of the compensation” received by Giuliani for his show and podcasts.

    The committee also took issue with Giuliani’s “numerous unauthorized postpetition payments,” only one of which the committee claims has been properly addressed. The letter highlighted allegations that Giuliani spent funds to pay the credit card bill of the woman alleged to be Giuliani’s girlfriend, Maria Ryan, while in the midst of his own bankruptcy proceedings.

    “Other than the return of this one payment, (Giuliani) has provided no evidence of repayment of the amounts (Giuliani) paid on account of the credit card statements of his wholly-owned business, Giuliani Partners, or his business’s employee and (Giuliani’s) reported girlfriend, Maria Ryan,” the letter states. “Nor has the Committee received any indication that (Giuliani) has any inclination to obtain repayment of these amounts.”

    The filing further states that Giuliani’s attorney indicated that such payments are not improper, but “has provided no evidence to substantiate such a view.”

    Finally, the committee claims, despite Giuliani’s previous mistake-laden filings, he’s done nothing to correct the record.

    The committee said it plans to address Giuliani’s alleged shortcomings in an upcoming June 17, hearing, but also told the court that it believed “the Debtor’s ‘trust but verify’ window has closed.”

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    The post ‘The Debtor’s ‘trust but verify’ window has closed’: Bankruptcy creditors rip Giuliani over ‘disturbing pattern’ of reporting no income first appeared on Law & Crime.