Hey Rudy, where’s the money?
A federal judge seems to be wondering that, warning that he may have to drag former New York City Mayor Rudy Giuliani to court after he claimed he had too little money to pay administrative fees in his recently dismissed bankruptcy case.
The formal dismissal of the lawsuit has been technically delayed because Giuliani has not paid standard fees, despite owning an estate worth nearly $10 million.
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“No order dismissing the case was issued due to a dispute over the payment of administrative costs incurred during the litigation,” Judge Sean H. Lane wrote. In a letter dated July 25th“That is, whether and how the debtor will pay such costs.”
The judge warned that he may have to force the recently disbarred lawyer to appear in Manhattan federal court to testify about how bankrupt he is.
It’s unclear how much Giuliani, once dubbed “America’s Mayor” for his response to the Sept. 11 terror attacks, is owed.
Lawyers not involved in the case said those costs can sometimes reach six figures, but that Mr. Giuliani likely owes much less because the litigation lasted only a few months.
Lane wrote that Giuliani’s bankruptcy filing was dismissed on July 12 because of “multiple lapses” in transparency about his financial situation.
The same judge argued in June that Giuliani, a former “tough on crime” federal prosecutor, cannot be trusted due to “dishonor, incompetence and gross mismanagement” and that a receiver should be appointed to oversee his finances. [his] “Matter.”
Giuliani continues to maintain he does not have the funds to pay financial advisers involved in his bankruptcy proceedings, but has not presented any evidence to support his claims of default.
“Instead, the debtors have simply refused to pay these expenses,” Lane wrote in the July 25 letter.
But Giuliani has at least about $10 million in funds, the judge said.
While the true size of Rudy’s wealth remains unclear, Lane said there’s “no doubt” that Giuliani still owns small real estate assets, including a $5.6 million Upper East Side apartment and a $3.5 million Florida condo.
That may explain why Mr Lane is seeking full payment from Mr Giuliani, although in such cases a judge can set aside a token fee if it turns out the fee is truly unaffordable.
The letter said Giuliani may have to give further “sworn testimony” even though “this path may in some ways mirror the failed financial transparency efforts that have plagued this case to date.”
Lane said the court and Giuliani’s team may need to reconsider dismissal of the lawsuit, appoint a receiver to manage the disgraced mayor’s assets and “promptly liquidate his assets, including his New York apartment, if necessary.”
Lawyers in a separate $10 million sexual harassment and wage theft lawsuit, one of several civil suits against Giuliani, seized Lane’s letter.
The lawsuit, filed by Noel Dunphy, had been stayed pending the completion of the bankruptcy proceedings, and in a recent filing, the lawyers argued that the case should be paused again because the bankruptcy dismissal has not yet been officially announced.
“It would be premature and inappropriate to lift the stay on the bankruptcy proceedings,” they wrote.
A source familiar with the case said the judge declined to reinstate the suspension but agreed to postpone a hearing scheduled for this week until the fall.
Mr. Giuliani’s lawyers did not respond to requests for comment Monday.
