Giuliani Spent Over $200,000 in Six Months While in Bankruptcy

Rudolph Giuliani spent $206,000 on personal expenses since filing for bankruptcy, according to new court documents, in response to a push by his creditors to vacate his control over the proceedings.

The former New York City mayor pulled money from his over $1 million in IRAs and other accounts protected in bankruptcy against creditor calls for payments. He used the funds to pay expenses over the past six months related to his business Giuliani Communications, his apartments in New York and Florida, a $150 yacht club fee and care expenses of his ex-wife’s mother, his counsel stated in a Monday objection to a trustee appointment motion.

Giuliani’s New York home is in the process of being sold and creditors are pushing for his Florida home to be listed on the market as well. His use of the so-called “exempt” funds to pay for apartment expenses “have a direct positive benefit for creditors by preserving the equity in the assets without cost to the estate,” Giuliani’s lawyers said in the objection, filed in the US Bankruptcy Court for the Southern District of New York.

He is also living off of income from his personal services, including a podcast, speaking events, and Rudy Coffee. The spending figure comes after months of backlash from his creditors, who argue that Giuliani hasn’t properly cooperated with bankruptcy rules and hid assets.

“His goal is to generate enough income from his personal services to cover his expenses,” Giuliani’s lawyer Gary Fischoff said in an interview Tuesday. “He is working hard to reach that goal.”

In May, creditors took the unusual step of requesting for the appointment of a trustee in the case. The move would remove Giuliani from controlling his bankruptcy proceedings and leave him at the mercy of a trustee’s decisions on how to preserve his assets and pay creditors.

Giuliani’s lawyers said he “may be struggling with some of the administrative aspects” but “does not intend to hide assets or mislead anyone.” The former Donald Trump lawyer is not committing bankruptcy fraud and hasn’t warranted a trustee appointment, the objection notes.

In response to the creditors’ claim that Giuliani should get a job to pay for the nearly $150 million he owes from a defamation suit, Giuliani’s counsel said “maybe the committee also has a suggestion on who would employ an 80 year old disbarred attorney.” Giuliani may also be suffering from 911 lung disease, the objection stated.

A doctor told Giuliani to investigate the possibility that he is suffering from symptoms of the disease, Fischoff said.

Creditors also called out Giuliani’s spending on Giuliani Communications in their motion for a trustee appointment. Giuliani’s lawyers admitted in the objection that his use of funds on the business was “not up to par — but was done out of habit — not fraudulent intent.” The company’s part time book keeper has been ill for the past 10 days, so Giuliani could not secure a profit and loss record for the company, according to the objection.

A hearing in the case is scheduled for June 17.

Berger, Fischoff, Shumer, Wexler & Goodman LLP represent Giuliani. Akin Gump Strauss Hauer & Feld LLP represent the official committee of unsecured creditors.

The case is Rudolph W. Giuliani, Bankr. S.D.N.Y., Docket No. 23-12055-shl.