New court documents claim that Rudy Giuliani misused funds set aside for his bankruptcy to pay the salaries of his girlfriend and her daughter.
A group of creditors who owe the former New York City mayor more than $150 million are asking a judge to immediately appoint a receiver to manage his estate “to protect creditors… and [Giuliani] According to documents filed Thursday in Manhattan U.S. Bankruptcy Court, he is drawing the funds “from himself.”
The creditors cited Giuliani’s “dishonesty, incompetence and [his] The “infidelity” means he can no longer be trusted to act in good faith in the Chapter 11 bankruptcy proceedings he began in December to address a $148 million defamation judgment for falsely accusing two Georgia election workers of voter fraud.
In an example of Giuliani’s mismanagement of funds, he admitted in court documents on Monday that he “used his earnings to pay the salaries of his alleged lover and her daughter,” the lawsuit alleges.
“[Giuliani] “He acknowledges that his income, i.e. his estate, is being used to pay his salary as an ’employee’ rather than for distribution to creditors,” they wrote.
In court documents Monday, Giuliani, 80, listed five employees of Giuliani Communications LLC, including his business partner and reported lover, Dr. Maria Ryan, and her daughter, Vanessa Fenderson.
He also admitted to paying Ryan’s credit card bill in January, according to court documents.
Giuliani, however, did not disclose Vanessa’s role or salary at the company. Creditors allege that Vanessa is a pseudonym for Vanessa Dawn Ryan, who is reportedly facing two criminal charges in North Carolina.
On Monday, the embattled Giuliani, who has now been disbarred, filed papers arguing that a receiver should not be appointed to manage his finances, and revealed that he “may” be suffering from a 9/11-related lung illness.
He pointed out that he can no longer practice law and that his future employment prospects are limited because of his health and age, and argued that the trustees cannot force him to work more or increase his income.
But creditors say Giuliani’s response, given that he has “struggled” to manage his bankruptcy case and acknowledged that “he needs to improve,” only proves that he should not be in control of his own finances.
Creditors last month accused Giuliani of obstructing the bankruptcy process, including by failing to sell his multimillion-dollar New York home and his condominium in Palm Beach, Florida, and by arguing that the automatic stay on bankruptcy should be lifted to allow him to appeal a huge defamation judgment.
They also say he is extravagant, spending far more than he earns by making dozens of Amazon purchases, buying multiple streaming subscriptions, taking Uber rides and spending tens of thousands of dollars on maintaining his two homes.
Giuliani faces further legal woes in two pending criminal cases in Arizona and Georgia, where he is accused of trying to tamper with the results of the 2020 presidential election in order to help Donald Trump win. He has pleaded not guilty to the charges.
A message left on Dr. Ryan’s website was not immediately returned Friday. A working phone number for Vanessa could not be found. A representative for Mr. Giuliani did not immediately return a message Friday.
