A committee of bankruptcy creditors found out that Trump lawyer Rudy Giuliani spent nearly $120,000 in January after he agreed to abide by a $43,000 budget.

On December 21, 2023, Giuliani declared bankruptcy six days after a jury in Washington, D.C., ordered him to pay $148 million to Ruby Freeman and Shaye Moss, the two Georgia election workers whom he falsely accused of stealing the 2020 presidential election from his client Donald Trump.

Judge Beryl A. Howell said she was concerned that Giuliani would try to conceal his assets.

The budget Giuliani promised to adhere to was drawn from funds from Social Security and retirement accounts.

His committee of bankruptcy creditors told a bankruptcy judge, who controls his spending that they will not let the former New York City mayor drive his creditors “off a cliff.” 

“Unfortunately, the committee is not surprised by the Debtor’s failure to file complete and accurate financial disclosures,” they stated in a court filing. “This is more of the same.”

“The Committee has no intention of letting the debtor drive his case and creditors off a cliff,” they wrote. “Accordingly, the committee files this motion as its last-ditch effort to compel the debtor to meet his fundamental obligations as a debtor in possession and avoid seeking the immediate imposition of more draconian relief.”

The committee outlined spending by Giuliani, which was approved by a bankruptcy court in the court filing.

They asserted that “In January, he made various unauthorized payments, including thousands of dollars for the credit card bills of [Dr.] Maria Ryan and one of his businesses.”

Ryan is the president of the former mayor’s media company, Giuliani Communications.

Giuliani’s adviser, Ted Goodman, told Newsweek that the creditors are part of a more extensive smear campaign.

“These ridiculous court filings are part of a larger effort to try to bully the mayor into silence through lawfare and a public smear campaign,” Goodman said. “Mayor Rudy Giuliani—one of America’s most effective federal prosecutors and one of the most successful mayors we’ve ever had—won’t be taken down.”

The adviser stated that Giuliani’s enemies had “nothing better to do than harass a man who has dedicated his life to improving the lives of the community and people around him.”

A committee of the former lawyer’s unsecured creditors now wants a Manhattan bankruptcy judge to dictate that he must file “delinquent monthly operating reports” for the months he also neglected to file any reports of his spending. 

They asked the judge to order him to “file timely future monthly operating reports.”

“As has been made abundantly clear in filings with the court, at hearings before the court and through correspondence with the debtor’s counsel, the committee does not have confidence in the debtor’s ability to meet his obligations generally as a debtor in possession and specifically related to making timely and accurate required financial disclosures,” this committee wrote.

“The debtor continues to show that he is either incapable or unwilling to do so,” they said.

In late March, Giuliani sent an email message to his supporters claiming that President Joe Biden is trying to put him behind bars.

The message stated that “the Deep State is hellbent on indicting, arresting, bankrupting, and imprisoning President Trump and his top allies for daring to challenge the corrupt forces that have hijacked our once Free Republic.” It also said that since the former lawyer “successfully defended President Trump from impeachment,” he is “at the top of their list.”

The Rudy Giuliani Freedom Fund sent this email, including his mugshot from Fulton County, Georgia. In 2023, he was charged with trying to overturn the 2020 election results in that state.

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Article by Alessio Atria

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