Bankrupt Giuliani’s legal woes escalate as judge demands to know 'who’s paying his legal fees'

20 February 2024

In a bankruptcy court filing on Friday, February 16, a law firm representing unsecured creditors for former New York City Mayor Rudy Giuliani demanded information about his donors. Giuliani recently filed for bankruptcy after being ordered to pay $148 million in damages to former Georgia election workers Ruby Freeman and Shaye Moss, who sued him for bankruptcy.

But Giuliani's financial problems could become even worse, as he is also facing a lawsuit from former employee Noelle Dunphy (who accused him of rape and is seeking $10 million in damages for allegations that include sexual assault, wage theft and harassment). And Giuliani is still a co-defendant in Fulton County, Georgia District Attorney's election interference/RICO case against former President Donald Trump.

According to Bloomberg Law reporters Evan Ochsner and Randi Love, "Rudolph Giuliani's creditors, as well as the judge overseeing his bankruptcy, are demanding details about who is paying his legal fees…. Gary C. Fischoff of Berger Fischoff Shumer Wexler & Goodman LLP, one of Giuliani's bankruptcy lawyers, said during a court hearing Friday that Giuliani hadn't contributed to the fund."

Oschsner and Love add, "But Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York pushed for a definitive answer, in writing…. Philip C. Dublin of Akin Gump Strauss Hauer & Feld, representing a committee of Giuliani's unsecured creditors, said Friday that the committee wants an itemized account of where the money came from, how it's managed, and how it's disbursed."

Meanwhile, Giuliani and his lawyers are, according to Law & Crime reporter Colin Kalmbacher, responding to Dunphy's lawsuit by attacking her credibility.

But Justin T. Kelton, an attorney for Dunphy, told Law & Crime, "The assertions by Mr. Giuliani and his representatives sound like more like wishful thinking than sober analysis. Unlike Mr. Giuliani, no court has ever found that Ms. Dunphy made any misrepresentation."

Kelton added, "Furthermore, Ms. Dunphy has already come forward with substantial evidence in support of her allegations, and her sworn complaint speaks volumes. Mr. Giuliani's attacks on Ms. Dunphy are both inappropriate and extremely ironic coming from someone with his track record."

In addition to $10 million, Dunphy is seeking other unspecified damages in her lawsuit against Giuliani.

Kalmbacher notes, "The latest filing in the case occurred in early January. That's when Dunphy’s lawsuit was stayed pending the resolution of Giuliani's bankruptcy proceedings in the Southern District of New York."

Read Law & Crime's full report at this link and Bloomberg Law's reporting here.

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