![Rudy Giuliani Defamation Case Begins In Washington, D.C.](https://pyxis.nymag.com/v1/imgs/e7d/691/2f08755dd686acbae509178e15604b7af9-Rudy-Giuliani.rsquare.w400.jpg)
Rudy Giuliani’s financial woes are deteriorating even further.
On Monday, a federal bankruptcy judge appeared open to taking a step that would be bad news for Giuliani’s financial independence: appointing an independent trustee to oversee the former New York City mayor’s finances and assets. Judge Sean Lane stopped short of a final ruling on the matter but suggested he had serious concerns about Giuliani’s ability and willingness to participate in the proceedings. He set another hearing for July 10. “There are reasons to be very concerned here,” he said, per Law & Crime.
Lawyers representing Giuliani’s creditors have alleged that the former mayor is intentionally funneling money intended for their clients through his personal business, Giuliani Communications, and that he has failed to file his required monthly financial reports on time. According to the New York Times, the reports Giuliani has submitted have been spotty at best, featuring conflicting cash balances that differ month to month and showing no sources of compensation despite his in-court claims that he supports himself through his Social Security benefits and his podcast.
“He’s not a doddering 80-year-old. He is a shrewd and manipulative man. His reports are false, inconsistent, and late. His deadlines are ignored,” said Rachel Strickland, an attorney representing Ruby Freeman and Shaye Moss, two Georgia election workers to whom Giuliani owes astronomical sums of money.
Giuliani’s legal team pushed back on those claims, saying his irregular records are a result of his bookkeeper falling ill and an accountant quitting. Strickland called those assertions “red flags.” The U.S. government has reportedly grown tired of Giuliani’s antics: The Times reports that a U.S. Trustee office representative indicated that the government could file to dismiss Giuliani’s bankruptcy claim, which would result in his losing the protection of his assets, including multiple homes and New York Yankees World Series rings.
Giuliani filed for Chapter 11 bankruptcy in December and declared $158 million in unpaid debts. The move came just days after a Washington, D.C., jury ruled the former mayor must pay $148 million in damages to Freeman and Moss in their defamation suit against him. Giuliani had falsely accused the mother and daughter of meddling in the vote-counting process as part of Donald Trump’s campaign against the 2020 election outcome, resulting in an endless cycle of racist and violent threats and harassment against the two women. In April, Giuliani lost an attempt to have the verdict thrown out. He’s also being sued by his former lawyer Robert Costello for $1.4 million in owed fees. Earlier this week, Hunter Biden dropped a pending civil lawsuit against Giuliani and Costello in connection with the release of data from his stolen laptop.