Rudy Giuliani has filed for bankruptcy just days after being ordered to pay $US148 million ($217 million) to two former Georgia election workers he falsely accused of fraud following Donald Trump’s 2020 presidential election loss.
Key points:
- Two former election workers faced a deluge of threats after Rudy Giuliani falsely claimed they were engaged in voting fraud
- In a new court filing, Mr Giuliani said he had between $US100m and $US500m in liabilities and $US1m to $US10m in assets
- Mr Giuliani’s bankruptcy filing will pause all of the pending civil lawsuits against him
Mr Guiliani, who was known as “America’s mayor” for his leadership of New York after the 911 attacks, faces a crush of debts stemming from his work as a lawyer on the former president’s behalf. He no longer works as Mr Trump’s lawyer.
Mr Giuliani also faces criminal charges in Georgia.
In a filing in US Bankruptcy Court in New York, Mr Giuliani said he had between $US100 million and $US500 million in liabilities and $US1 million to $US10 million in assets.
A spokesperson for Mr Giuliani said the bankruptcy filing will give him time to appeal the $US148 million penalty and ensure that other creditors are treated fairly.
“No person could have reasonably believed that Mayor Rudy Giuliani would be able to pay such a high punitive amount,” spokesperson Ted Goodman said.
Bankruptcy filing may not affect defamation payout
US bankruptcy proceedings can enable people and companies to wipe away or reorganise their debts, and Mr Giuliani’s filing will pause all of the pending civil lawsuits against him.
However, it may not allow him to duck the money he owes the election workers, as judges have ruled that defamation penalties cannot be discharged if a debtor has engaged in “wilful and malicious” conduct.
The two former election workers, Wandrea “Shaye” Moss and her mother Ruby Freeman, faced a deluge of threats after Mr Giuliani falsely claimed they were engaged in voting fraud.
Mr Giuliani has repeated those claims following the December 15 verdict even though he has admitted in court that they were defamatory, prompting the two workers to file a second lawsuit.
A federal judge on Wednesday ruled Mr Giuliani must immediately begin paying the two women, concluding there was a risk he might attempt to conceal his assets.
A lawyer for the two women said bankruptcy would not discharge his debt to them.
Guiliani’s rollercoaster career
Mr Giuliani was named Time magazine’s Person of the Year following the 2001 attacks, and he mounted an unsuccessful bid for the 2008 Republican presidential nomination.
As Mr Trump’s personal lawyer, he led efforts to keep Mr Trump in the White House following his 2020 defeat, filing unsuccessful lawsuits to challenge the results and falsely claiming in public testimony that he had evidence proving election fraud.
His seat-of-the-pants efforts often drew ridicule. He scheduled a press conference at a “Four Seasons” in Philadelphia that turned out to be a landscaping company, not a luxury hotel.
At another news conference, a dark substance, possibly hair dye, dripped down his face.
He called for “trial by combat” at a rally for Trump supporters on January 6, 2021, shortly before thousands of them attacked the US Capitol in an effort to prevent Congress from certifying Mr Trump’s defeat.
Mr Giuliani, along with Mr Trump and more than a dozen other co-defendants, faces criminal charges of election subversion in Georgia. He has pleaded not guilty.
His law licence has been suspended in New York and he faces disbarment in Washington.
Mr Giuliani listed US President Joe Biden’s son, Hunter Biden, and a former employee, Noelle Dunphy, as creditors on the bankruptcy filing.
Hunter Biden has sued Mr Giuliani for violating his privacy over data allegedly taken from his laptop, while Ms Dunphy has sued him for sexual assault, harassment and wage theft. Mr Giuliani has denied the allegations.
Ms Dunphy’s lawyer Justin Kelton said they would not be deterred from pursuing the case.
Other creditors include Smartmatic and an employee of Dominion Voting Systems. He faces lawsuits for claiming both voting-machine companies flipped votes from Mr Trump to Mr Biden in the 2020 election.
The two companies did not immediately respond to requests for comment.
Mr Giuliani also said he owed nearly $US1 million to the US and New York state governments and nearly $US2 million in legal fees.
Two law firms that formerly represented him have sued for unpaid bills.
Reuters