...
By Sean O'Driscoll
Senior Crime and Courts Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Rudy Giuliani's creditors want a bankruptcy judge to immediately appoint a trustee to oversee his finances amid accusations that he is hiding his spending and income from them.
They attached a contract for a new Rudy Giuliani brand of coffee in which the former New York City mayor would take in 80 percent of profits, along with documentation allegedly that he is making needless purchases of the same products.
Giuliani declared bankruptcy after a Georgia jury awarded $148 million to two Georgia election workers who had filed a defamation lawsuit against him.
Read More
Justice John Roberts Response to Democrats Sparks Fury: ‘Corruption’3 min read
Melania, Ivanka Absence at Trial ‘Absolutely’ Bothers Donald Trump: Ex-Aide3 min read
Alvin Bragg Made ‘Factually Impossible’ Accusation Against Trump—Attorney5 min read
...
While working as an election attorney for Donald Trump in the 2020 presidential election, Giuliani falsely alleged that mother and daughter Ruby Freeman and Shaye Moss had committed election fraud while counting ballots in Fulton County, Georgia.
In a filing in bankruptcy court in Manhattan on May 28, lawyers for the creditors committee said Giuliani had not been forthcoming about his income and expenditure.
Newsweek sought email comment from Giuliani's spokesman on Wednesday.
Rachel Biblo Block, an attorney with Akin Gump Strauss Hauer, who represents Giuliani's creditors, wrote in her filing on Tuesday that Giuliani had signed a deal to promote his own brand of coffee called "Rudy Coffee."
She attached a contract, signed by Giuliani, in which a company called Burke Brands "will assist with developing marketing materials" and that Giuliani "will be entitled to 80% of net profit of each sale of Rudy Coffee."
Biblo Block included an email from her law firm to Giuliani's lawyers on May 9 in which the law firm raised concerns about Giuliani's spending. The concerns were based on a monthly operation report that Giuliani must supply the debtors as part of the legal requirement for declaring bankruptcy.
"We have reviewed the operating report for February and March and have significant questions regarding the debtor's disclosures and spending, including with respect to his Amazon and Apple purchases," the email says. "The troubling quality of similar Amazon and Apple transactions which were only disclosed after the committee requested supporting documentation for the debtor's January operating report."
Biblo Block also requested "item by item supporting detail" for his Amazon and Apple transactions be sent to her office by May 13.
In her court filing, she said the debtors need an "immediate" trustee appointed over Giuliani's finances to avoid any impropriety.
It follows months of legal wrangling over Giuliani's finances, with the creditor committee lawyers alleging that Giuliani is trying to shield his assets from them.
In April, they accused Giuliani of "histrionics" by claiming he could be left homeless if creditors seize his $3.5 million Florida apartment.
"The Debtor also resorts to histrionics, asking '[s]urely the Committee does not intend the Debtor to join the ranks of the homeless?' It seems hardly worth pointing out that there is a vast gulf of housing options available between residing in an approximately $3.5 million Palm Beach condominium and homelessness," according to the April 1 filing by Philip C. Dublin, an attorney for the creditors.
"Moreover, there is plenty of case law establishing the fact that '[a] debtor cannot file a chapter 11 petition and claim an entitlement to live in the style to which he or she has become accustomed.'"
View 0 Comments
Submit Correction
View Editorial & AI Guidelines