The individual who has long been the primary advocate for Former President Donald Trump’s unfounded claims of election fraud has decided to end his bankruptcy protection on Friday.
Rudy Giuliani, once hailed as “America’s mayor” and recently criticized by his own lawyer as “an 80-year-old disbarred attorney,” is facing a judgment of nearly $150 million for defaming two Georgia election workers following the 2020 election. He also still has pending lawsuits related to his actions as the leader of Trump’s legal team after the election.
After losing the case brought by Ruby Freeman and Shaye Moss last year, Giuliani filed for bankruptcy and tried to appeal the case without paying the necessary appeal bond, which he now appears unable to afford based on his recent filings.
On Friday, Judge Sean Lane of the Federal Bankruptcy Court for New York’s Southern District determined that it is best for creditors to pursue Giuliani outside of the bankruptcy process.
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This decision allows Freeman and Moss to begin seeking Giuliani’s assets while he attempts to appeal the case, and it also reactivates other lawsuits against Giuliani, including those by Dominion Voting Systems and former employee Noelle Dunphy.
“Ruby Freeman and Shaye Moss have waited long enough for justice. We are glad the Court saw through Mr. Giuliani’s tactics and halted his abuse of the bankruptcy system. We will enforce our judgment against him promptly,” said Rachel C. Strickland, the attorneys for Freeman and Moss.
Giuliani is no longer shielded by bankruptcy, and documents suggest that he may have to liquidate his assets, including his Manhattan apartment, to raise up to $350,000 for costs related to the unsuccessful bankruptcy filing.
Following months of legal battles against lawyers for Freeman and Moss, as well as other plaintiffs in ongoing cases, Giuliani proposed a new bankruptcy proceeding involving the sale of his assets but later withdrew the bankruptcy claim entirely, despite opposition from other parties with legal claims against him.
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This development is a victory for Freeman and Moss, according to their attorneys.
“From beginning to end, this case has been about my clients and their judgment. The bankruptcy filing was a tactic done in bad faith … He views this court as a temporary halt to his troubles,” said Rachel Strickland at a recent hearing.
During the hearing, Giuliani, participating remotely via telephone, interrupted to contest Strickland’s arguments, claiming they were defamatory. Judge Lane reminded Giuliani not to disrupt the proceedings.
Georgia election workers Freeman and Moss secured their judgment against Giuliani in Washington, D.C. last year after a court determined that his accusations of ballot fraud against them were baseless.
“Mr. Giuliani plans to proceed with his appeal of the Freeman defamation judgment,” stated Gary Fischoff, Giuliani’s attorney.
Friday’s ruling enables their attorneys to resume efforts to enforce the judgment against Giuliani and pursue further penalties for what they allege is ongoing defamation in his remarks about the election since the initial judgment was made by Judge Beryl Howell 11 months ago.
“We believe the court misinterpreted the facts of the case from the creditors’ perspective but ultimately made the correct decision by dismissing the case,” said Heath Berger, also representing Giuliani.
