(TargetDailyNews.com) – Former New York City Mayor Rudy Giuliani suffered another legal blow as his bankruptcy case was dismissed on July 12. The case was abrogating collection attempts from other judgments against him, specifically the defamation lawsuits brought by Georgian election workers Ruby Freeman and Shaye Moss, who won a $148 million defamation suit against Giuliani.
Giuliani was able to interrupt and prevent the collection of the multi-million dollar judgment by claiming bankruptcy. The delay lasted six months, but now the legal shield has been removed.
Giuliani publicly claimed Moss and Freeman were engaged in election fraud during the 2020 election. Subsequent civil suits determined those claims to be false, yielding the massive $148 million judgment against Giuliani. The bankruptcy filing was largely criticized as a maneuver to stall collection and buy time after Giuliani was ordered to pay up.
U.S. Bankruptcy Judge Sean Lane said he was “disturbed” and issued warnings to Giuliani and his legal team after they failed to produce full financial disclosures by deadlines determined by the court. Giuliani also hasn’t sold any of his real estate.
Lane called the delay tactics “inequitable and ill-advised” and highlighted Giuliani’s failure to undergo a full financial review by the court. He also called his failure to hire an accountant a big red flag.
Lane additionally contrasted Giuliani’s behavior with that of “most debtors” in his experience, saying that generally, people in his position will attempt to cure “at least some” of the problems cited by the court. He wrote that Giuliani hasn’t tried to address any of them.
Giuliani also attempted to incorporate his appeal to the defamation verdict into the bankruptcy case, but Lane repeatedly denied this tactic.
Moss and Freeman can now potentially continue to try to collect a chunk of the $148 million from Giuliani. However, other parties are also suing him and seeking financial restitution.
Creditors are asking the court to remove financial control over his assets from Giuliani and assign it to a third party.
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