Rudy Giuliani, the former Mayor of New York City, faces a new legal challenge. He is accused of exploiting the bankruptcy system by two former Georgia election workers, Wandrea ‘Shaye’ Moss and her mother, Ruby Freeman, following a suit seeking to “permanently bar” him from making additional defamatory comments about them.
$148 Million Awarded
Moss and Freeman were awarded $148 million in damages for defamation on December 15.
False Accusations
The substantial amount was awarded after Giuliani, who served as an attorney for former President Donald Trump, falsely accused Moss and Freeman of ballot fraud during the 2020 presidential election in an attempt to retain Trump as president despite his loss to Biden.
Harassment and Resignation
Freeman and Moss stated that they faced a relentless onslaught of harassment and death threats as a result of Giuliani’s false allegations, ultimately leading to their resignation from their positions.
Giuliani’s Financial Struggles
The judgment exacerbates Giuliani’s existing financial difficulties, many of which are linked to lawsuits from his activities surrounding the 2020 election.
Chapter 11 Bankruptcy
Days after the judgment to pay $148 million, Giuliani filed for Chapter 11 bankruptcy. He assessed his assets to fall between $1 million to $10 million.
Damages Collection Halted
The bankruptcy filing halted the damages collection, but Giuliani also sought to appeal the verdict and potentially ask for a new trial, as per a report by Law and Crime.
Judge’s Concerns About Giuliani
The presiding Judge, Beryl A. Howell, who ordered Giuliani to pay the $148 million, also noted in her decision a strong likelihood that Giuliani may attempt to conceal his assets from the plaintiffs.
Giuliani’s Asset Concealment
Howell wrote, “Giuliani has never denied that he has taken steps to hide his assets from judgment creditors, and has offered no affirmative pledge that he will take no steps to do so.”
Legal Maneuvers
Moss and Freeman’s attorneys have criticized Guilani’s move in court documents, accusing Giuliani of manipulating the legal system.
Attempt to Have It All
The filing on Thursday noted that Giuliani is “looking to have his cake and eat it too: he wants to appeal the Freeman Litigation, not post a bond, and use the automatic stay to bar Ms. Freeman and Ms. Moss from enforcing their judgment.”
Ignored Defense Requests
The attorneys stated Giuliani is pursuing an appeal despite failing to respond to information requests before the trial. They emphasized that he had ample chances to defend himself but opted not to engage.
Bankruptcy Decision
The attorneys suggest that if Giuliani was genuinely interested in appealing the Freeman Litigation, he could have chosen not to file for Chapter 11 bankruptcy.
Chapter 11 Motive
The lawyers stated, “Mr. Giuliani’s sudden desire to participate in the Freeman Litigation, conditioned on a halfway lift of the automatic stay, calls the good faith of his chapter 11 filing into question.”
Predictable Bankruptcy
In December, Ted Goodman, Giuliani’s political adviser, stated that the bankruptcy filing was predictable and necessary for Giuliani to appeal while ensuring fair treatment of all creditors.
Bankruptcy for Appeal and Transparency
Goodman said the bankruptcy filing would give Giuliani “The opportunity and time to pursue an appeal, while providing transparency for his finances under the bankruptcy court’s supervision, to ensure all creditors are treated equally and fairly throughout the process.”
Further Legal Actions
Following the awarding $148 million in damages, Moss and Freeman initiated another lawsuit against Giuliani. This new legal action seeks to prevent him from further spreading false allegations, citing his ongoing defamatory remarks.
Unwavering in Allegations
Giuliani told reporters after the trial that his discredited allegations “were supportable and are supportable today.”
Video Evidence Claim
He also told Newsmax, “He was in possession of video evidence demonstrating the truth of his allegations.”
Vows to Continue Defending Claims
In a video posted on X, Giuliani maintained his innocence and indicated that he would continue to assert his election fraud claims, even if it meant risking his entire fortune or facing imprisonment.
Georgia Election Case
Besides these civil litigations, Giuliani was indicted alongside Trump and others in August 2023 for their attempts to overturn the 2020 election results in Georgia.
Not Guilty Plea
Giuliani has pleaded not guilty, with prosecutors proposing an August 2024 trial date.
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