[ad_1]
A bankruptcy judge must appoint a receiver to immediately take control of Rudy Giuliani’s financial affairs after the former mayor repeatedly lied and deceived creditors about his finances, attorneys for creditors said in a court filing Tuesday.
Among other things, lawyers said Giuliani funneled money into his business to avoid going to creditors, undervalued his jewelry and refused to disclose what several Apple and Amazon purchases were for. Giuliani filed for bankruptcy in December, shortly after a Washington jury ordered him to pay $148.1 million in damages of Ruby Freeman and Shay Moss, two Atlanta, Georgia, election workers he spread lies about after the 2020 election.
“Time and time again, the debtor has shown his preference for delay, diversion and theatrics over progress, recovery and maximizing value to his creditors.” His creditors should not accept this as their plight,” lawyers for the creditors wrote. “Accordingly, the time has come for the immediate appointment of a Chapter 11 trustee to take control of the debtor’s assets and financial affairs, including his wholly-owned business.”
Ted Goodman, a spokesman for Giuliani, did not respond to a text message seeking comment.
Lawyers representing the creditors said they had only just learned of Giuliani’s deal with promote a coffee brand via press releases earlier this month.
Giuliani receives 80% of the net proceeds from the sale of each bag, which are paid to Giuliani Communications, LLC, which he owns, according to the contract. This arrangement is deliberate, they said, to ensure that the profits from the deal do not go to creditors.
“These facts suggest that Mr. Giuliani, a Chapter 11 debtor with over $148 million in claims against him, is working for free to the detriment of his creditors, which is problematic in itself, and/or diverting funds that belong of his creditors to his business and using his business as a piggy bank, which is fraud,” they wrote.
“The former mayor of new York City, a former Deputy United States Attorney and former United States Attorney for the Southern District of New York, can and should find a paying job that will help finance distributions to his creditors instead of kickbacks to his friends and personal fund for slush. “
Reviewing Giuliani’s credit card statements, they said it was clear that he personally paid “to cover the travel and lodging expenses of his close associates and employees of his business.” They also said he paid the expenses of Maria Ryan, his girlfriend. In an email disclosed as part of the filing, Giuliani’s lawyers said Giuliani had reimbursed expenses paid on his behalf. “Debtor WILL NOT pay on anyone else’s cards,” Heath Berger, Giuliani’s attorney, it says in the email.
Among his assets, Giuliani also listed a collection of several luxury watches and three New York Yankees World Series rings worth a total of $30,000. Creditors accused him of deliberately undervaluing the items, citing a single Yankees World Series ring that was auctioned for more than $29,000. They also said he refused to sell his Palm Beach home and failed to disclose his current membership in the Palm Beach Yacht Club.
“Whether or not Mr. Giuliani is actually a member of this club (and he appears to be), his conduct is viewed by the Committee and its creditors as dishonest.” Because while his creditors are being told to sit on their hands, Mr. Giuliani is choosing to ignore his obligations as a debtor in possession and instead relax at the Palm Beach Yacht Club,” the attorneys wrote.
Giuliani also filed several expense returns late with the court and failed to provide information on a “disturbing amount of Amazon and Apple transactions,” lawyers said. Its disclosure of expenses in January, for example, included “at least 60 Amazon transactions,” and lawyers for the creditors said they had no idea what they were for.
“The commission will now have to investigate whether the debtor is liable for bankruptcy crimes by using his business to divert resources from his estate and creditors in connection with his alleged income that he never personally received,” lawyers wrote.
Giuliani has pleaded not guilty to separate criminal charges related to his attempts to overturn elections in Arizona and Georgia.
[ad_2]
