Judge Mulls Removing Rudy Giuliani’s Ability To Manage His Finances

(NewsReady.com) – Rudy Giuliani filed for Chapter 11 bankruptcy in December 2023 after a jury ordered him to pay $148 million to two 2020 Georgia election workers he was found to have defamed. The former New York City mayor’s creditors want a judge to appoint a trustee to handle his finances. The bankruptcy judge is now considering the option.

On June 17, US Bankruptcy Judge Sean Lane heard arguments from Giuliani’s creditors who wanted someone else to handle the former mayor’s finances. Giuliani has remained in control of his finances because he filed Chapter 11. Rachel Strickland, the attorney for the election workers, accused the 80-year-old of being a “shrewd and manipulative man” whose “reports are false, inconsistent, and late.”

Strickland accused the former mayor of “funneling money” through Giuliani Communications. Giuliani’s lawyer, Gary Fischoff, admitted his client had not turned over information about the company’s finances.

The creditors accused the ex-attorney for former President Donald Trump of hiding his finances and using the bankruptcy as a delaying tactic. Lawyer Rachel Biblo Block, who represents the unsecured creditors committee, accused Giuliani of “gross mismanagement” of his finances. She accused him of not reining in his spending either, pointing to $26,000 worth of credit card expenses since filing for bankruptcy.

Fischoff argued his client had canceled the credit cards and was trying to hire another accountant. He went on to say that Giuliani has “been paying [his] expenses not with creditors’ money, with his own money.”

Judge Lane demanded to know how he was supposed to know that.

The judge didn’t rule on the request but expressed concern about Giuliani’s inability to keep an accountant and bookkeeper. He also said that the case record suggested he “should be extremely concerned.” The judge also mentioned that Giuliani had failed to comply with the orders in the bankruptcy case and said it was “highly problematic.”

Another court date will take place on July 10.