CNN
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Rudy Giuliani is no longer eligible for bankruptcy protection, a judge ruled Friday, and creditors can immediately pursue his assets within days.
The former New York mayor is seeking bankruptcy protection after a jury awarded two Georgia election workers $148 million after Giuliani defamed them after the 2020 election. On Friday, the judge’s decision to end his bankruptcy cleared the way for Ruby Freeman and Shay Moss and other creditors to try to collect more than $150 million in debts owed by Giuliani.
Judge Sean Lane of the Federal Bankruptcy Court in New York made the decision because of Giuliani’s lack of transparency after he filed for bankruptcy six months ago.
In his 22-page opinion, Lane noted that Giuliani did not provide any insight into the books of the companies he owns, which have taken thousands of dollars in wire transfers in recent weeks. The judge also said Giuliani had not been fully transparent with his creditors — such as not fully explaining an upcoming book deal in a timely manner or keeping his personal income from a radio show and podcast together in corporate accounts.
“Mr. Giuliani has failed to provide an accurate and complete picture of his financial affairs during the six months pending this case,” Lane wrote in his decision Friday. “The lack of financial transparency is particularly troubling. Mr. Giuliani is self-dealing and has conflicts of interest that could interfere with the administration of his bankruptcy case.”
Giuliani — once Time magazine’s Person of the Year and a staple of New York society — says he’s now worth about $10.6 million, almost all of that in assets he owns in New York City and two apartments in Palm Beach. Florida
Moss and Freeman plan to claim those properties in the coming days, according to their attorneys.
In a statement issued by a spokeswoman, Giuliani portrayed himself on Friday as a man who has been punished for his role in politics in recent years.
“We will continue to pursue justice, and we are confident that in the long run our justice system will be restored and the mayor fully vindicated,” Giuliani’s spokesman, Ted Goodman, said in a statement.
Lawyers for Giuliani have indicated that he plans to appeal the defamation jury verdict in favor of Moss and Freeman, and that he may fight them in state court over any rights they claim.
In addition to a $6 million, three-bedroom co-op apartment on Manhattan’s Upper East Side and a $3.5 million condo on the Intracoastal Waterway in Florida, Giuliani’s creditors will also seek to seize his bank accounts, a Mercedes-Benz sports car, a collection of 26 luxury watches, and three World Series championship rings for the New York Yankees. and other baseball memorabilia, such as a signed Joe DiMaggio shirt.
The value of those other assets is unclear, as lenders allege Giuliani either understated or did not disclose a full estimate of the value he held. According to court filings in his bankruptcy case, creditors believe a World Series ring alone would sell for nearly $30,000.
According to bankruptcy filings, Giuliani also claims he owes the state of California more than $10,000 in back taxes for his appearances on the television singing game show “The Masked Singer.”
Giuliani has filed filings in recent weeks that he expects to receive tens of thousands of dollars in pay from various ventures: coffee beans sold with his name and image on them, and a documentary that has been years in the works.
The court ruling, announced Friday by Lane in White Plains, New York, marks a long, slow decline for Giuliani, which has been linked to his work as former President Donald Trump’s lawyer after the 2020 election.
Giuliani lost his New York law license last week after he filed false statements in court challenging the election results on Trump’s behalf. He is fighting criminal charges in Arizona and Georgia related to Trump’s efforts to undermine his election loss. Giuliani has pleaded not guilty in both cases.
Giuliani agreed to end his bankruptcy proceedings after Freeman and Moss suggested that approach earlier this week. They and other creditors were angered by his lack of transparency about his assets.
Creditors argued to a judge in recent days that Giuliani was using the bankruptcy system to avoid paying his debts and acting in bad faith. That allegation prompted a lawsuit from Giuliani claiming he had been defamed.
In addition to Moss and Freeman, Giuliani owes more than $1 million in back taxes, tens of thousands of dollars in unpaid phone bills and more than $1 million to a law firm where a close friend represented him through past investigations.
A number of companies and individuals are also suing him, including former aide and voting machine companies Smartmatic and Dominion.
This story has been updated with additional updates.
CNN’s Sabrina Shulman contributed to this report.
