A federal judge in New York has dismissed Rudy Giuliani's bankruptcy case, accusing him of using the filing to evade payment on a significant defamation claim.

The dismissal decision permits creditors, including defamation plaintiffs Ruby Freeman and Shaye Moss, to continue legal action to collect the $148 million owed by Giuliani, as the Washington Examiner reports.

Giuliani sought bankruptcy protection seven months ago, aiming to shield himself from paying millions in a defamation case.

U.S. Bankruptcy Judge Sean Lane of the Southern District of New York presided over the case and ultimately decided to dismiss it. Giuliani had been accused of employing the bankruptcy process to dodge a $148 million defamation claim awarded to Freeman and Moss.

Giuliani's False Election Claims

The defamation claim stemmed from Giuliani's prior accusations against Freeman and Moss. He wrongfully alleged that they helped steal the 2020 presidential election from former President Donald Trump.

The dismissal of the bankruptcy case now enables Freeman, Moss, and other creditors to pursue legal avenues to recover the owed funds.

Resumption of Pending Lawsuits

All pending lawsuits against Giuliani, which were previously on hold due to the bankruptcy proceedings, will now resume. Among these are additional defamation suits filed by Dominion Voting Systems and Smartmatic, as well as a sexual harassment claim brought by Nicole Dunphy.

During the bankruptcy proceedings, Giuliani was found to have inadequately disclosed his financial assets and income. He missed court deadlines and submitted incomplete monthly financial reports. His financial disclosures listed $153 million in debt, including $3.7 million in legal fees and over $1 million in state and federal taxes.

Giuliani's Financial Misrepresentations

In his financial reports, Giuliani reported having less than $100,000 in his bank account at the end of May and stated he was living off a retirement account. He also failed to disclose his net worth and provide financial details about his businesses. This lack of transparency led to further scrutiny from the court and creditors' lawyers.

Creditors' legal representatives subpoenaed Mike Lindell, CEO of My Pillow, to gain a clearer picture of Giuliani's assets. This move was part of a broader effort to uncover any hidden financial resources that Giuliani might possess.

Attorney Criticizes Giuliani's Conduct

Attorney Philip C. Dublin, representing the committee of creditors, criticized Giuliani's conduct throughout the bankruptcy process. Dublin accused Giuliani of treating the case with disrespect and attempting to hide behind a facade of being an elderly, forgetful man.

“Since day one, Giuliani has regarded this case and the bankruptcy process as a joke, hiding behind the facade of an elderly, doddering man who cannot even remember the address for his second multimillion dollar home and claims impending homelessness if he must sell that second multimillion dollar home,” Dublin stated.

Broader Implications for Giuliani

The dismissal of the bankruptcy case not only impacts Freeman and Moss but also has broader implications for Giuliani's legal and financial standing.

The resumption of lawsuits from Dominion Voting Systems, Smartmatic, and Nicole Dunphy adds to Giuliani's mounting legal challenges.

Conclusion

In summary, the dismissal of Rudy Giuliani's bankruptcy case by a federal judge allows creditors to pursue legal action to collect the $148 million owed.

Giuliani's attempts to avoid paying the defamation claim awarded to Freeman and Moss, along with his failure to accurately present his financial assets and income, led to the case's dismissal.

The decision also means that all pending lawsuits against Giuliani, including defamation suits from Dominion Voting Systems and Smartmatic, as well as a sexual harassment claim, will now proceed.

This outcome highlights the critical need for transparency in bankruptcy proceedings and the consequences of failing to adhere to legal obligations.