Former New York City Mayor Rudy Giuliani is accused of spending money reserved for his bankruptcy case on his girlfriend and her daughter. Giuliani filed for bankruptcy in December 2023 after he was ordered to pay $148 million to Ruby Freeman and Shaye Moss. The former mayor falsely accused Freeman and Moss of tampering with election results, landing him a defamation lawsuit.

In April, Giuliani faced social media backlash for arguing that he shouldn’t sell his $3.5 million Flordia penthouse in his bankruptcy filing. Records also showed Giuliani spent three times the budget allowed by the court in January, adding up to a whopping $120,000. The former mayor was also said to have spent an additional $43,000 in the following months despite reportedly only earning around $2,000 monthly.

At the end of May, creditors harshly criticized Giuliani for his “egregious spending habits,” citing a “gross mismanagement” of his finances. Giuliani reportedly owes over $150 million to a group of creditors. The creditors urged a Manhattan judge to assign a trustee to Giuliani to halt his reckless spending.

On Monday, Giuliani wrote in court papers that he used his income to “pay the salaries of his reported girlfriend and her daughter” by listing them as employees under Giuliani Communications, LLC. Dr. Maria Ryan is listed as Giuliani’s business partner and is said to be his girlfriend, but Giuliani’s head of security denied any romantic relationship. 

“Any reports of [Ryan] being his girlfriend are false rumors made up by the mayor’s enemies to damage his reputation and anyone associated with him,” said Michael Ragusa in a statement.

Giuliani argued against an appointed trustee, citing a possible lung disease linked to the 9/11 terrorist attack. Creditors say his dwindling health is another reason to have a second party oversee his finances, as Giuliani admitted to “struggling” with his deteriorating circumstances.

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Ann Hoang

Article by Ann Hoang

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