In a surprising turn of events, former New York City mayor and Donald Trump‘s attorney, Rudy Giuliani, has filed for Chapter 11 bankruptcy following a recent court order to pay $146 million in damages to Fulton County election workers, Ruby Freeman and Shaye Moss, who had sued him for defamation.
Giuliani’s financial troubles came to a head less than a week after the jury’s verdict, with the estimated liabilities ranging between $100 million and $500 million. Despite the initial $148 million damage award, a federal judge later reduced the amount to $145,969,000. Michael Gottleib, the lawyer representing Freeman and Moss, expressed skepticism about Giuliani’s bankruptcy maneuver, stating, “This maneuver is unsurprising, and it will not succeed in discharging Mr. Giuliani’s debt to Ruby Freeman and Shaye Moss.”
Rudy Giuliani is (rightfully) getting a lot of attention today as he files for bankruptcy following the $148 million judgment in the defamation case against him.
— Robert Reich (@RBReich) December 21, 2023
But let's also take a moment to focus on Ruby Freeman and Shaye Moss, two of the people hurt by his lies. pic.twitter.com/Kp1I840nQs
Concerns about Giuliani’s honesty regarding his financial situation were highlighted by Judge Beryl Howell, who ordered immediate compensation to the election workers. The judge’s apprehension stemmed from the possibility that Giuliani might not comply with the judgment, raising questions about his financial transparency.
Giuliani’s claim that the bankruptcy filing should not be a surprise resonated with his political adviser, Ted Goodman, who stated, “Chapter 11 will afford Mayor Giuliani the opportunity and time to pursue an appeal, while providing transparency for his finances under the supervision of the bankruptcy court, to ensure all creditors are treated equally and fairly throughout the process.”
Once considered to have a net worth exceeding $50 million, Giuliani’s financial downfall is evident in the bankruptcy filing, where he estimates his assets between $1 million and $10 million. The filing also reveals substantial debts, including $724,000 owed to the IRS for income tax in 2022 and 2021, and an additional $265,000 owed to the state of New York.
The bankruptcy documents further indicate “unknown” debts to Dominion Voting Systems and Smartmatic USA, both voting technology companies that sued Giuliani for defamation over false claims related to the 2020 presidential election. Notably, Giuliani is listed as owing an unspecified amount to Hunter Biden, who filed a lawsuit in September accusing Giuliani of improperly accessing and sharing his personal information.
In a bid to generate cash, Giuliani resorted to selling 9/11-themed shirts for $911, endorsing sandals sold by Donald Trump ally Mike Lindell, and offering video messages on Cameo for $325 each. However, his Cameo page now states that Giuliani is no longer available for such services.
Giuliani’s attorney, Joe Sibley, argued before the jury that the financial damages sought by Freeman and Moss would be the “civil equivalent of the death penalty.” With Chapter 11 bankruptcy now in play, Giuliani aims to navigate the legal landscape, pursue an appeal, and bring transparency to his financial affairs under the oversight of the bankruptcy court. As the legal saga unfolds, Giuliani’s financial woes and the implications of his bankruptcy filing continue to draw attention, marking a significant chapter in the post-election controversies that have followed the 2020 presidential race.
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