A diverse coalition owed money by Rudy Giuliani meets virtually for first bankruptcy hearing
NEW YORK — A group of people and companies who say Rudy Giuliani is owed money met virtually Friday for the first hearing since he declared bankruptcy last month after losing a defamation lawsuit to two election workers in Georgia.
During a two-hour Zoom hearing, a lawyer for Giuliani told a U.S. bankruptcy judge that the former New York mayor does not have the money to pay the $148 million he owes election workers for spreading a conspiracy about their role in the 2020 election. Others with claims against Giuliani will also have to wait.
“There is no pot of gold at the end of the rainbow,” said the attorney, Gary Fischoff, noting that Giuliani made his living as a radio and podcast host while dealing with a wide range of “financial issues.”
The bankruptcy filing has spawned a diverse coalition of creditors who previously sued Giuliani over unrelated issues.
In addition to the election workers, creditors include a supermarket worker who was thrown in jail for patting Giuliani on the back, two election technology companies about which he spread conspiracies, a woman who says he forced her to have sex, several of his former lawyers, the IRS and Hunter Biden. Biden is suing Giuliani, saying he improperly shared his personal information after obtaining it from the owner of a computer repair shop.
Giuliani’s bankruptcy filing last month came a day after a judge ordered him to immediately pay $148 million to Ruby Freeman and her daughter Wandrea “Shaye” Moss. The Chapter 11 declaration halted the verdict, but also prevented Giuliani from challenging the verdict.
During Friday’s hearing, Giuliani’s attorney tried to convince the bankruptcy judge, Sean Lane, to temporarily lift the stay so he could appeal the verdict.
Lane agreed to the procedural step, subject to certain conditions, adding: “There are legitimate concerns here about the expenditure, the cost and the delay.”
Some of Giuliani’s creditors have raised concerns that he is abusing the bankruptcy process to avoid paying his debts.
The lawyer for a group of creditors, Abid Qureshi, noted that Giuliani has a “transactional relationship with the truth” and urged the judge to put up guardrails to ensure the lawsuit does not drag on unnecessarily.
And he hinted at a possible conflict among those who say Giuliani is owed money, warning that the judge’s decision “could have unintended consequences if a particular creditor were to get in line.”
Ron Kuby, an attorney representing Daniel Gill, a ShopRite employee who is suing Giuliani for plotting an attack on him, said there was “no disharmony among the creditors.”
“It’s an interesting group in itself: you have a ShopRite worker, election workers, an alleged sex worker,” he added. “This man has let down many employees.”
The next hearing is scheduled for January 31.