Creditors Demand Probe into Trump's Payments to Rudy Giuliani

Rudy Giuliani faces new legal challenge over unpaid debts.

by Nouman Rasool
Creditors Demand Probe into Trump's Payments to Rudy Giuliani
© Brandon Bell/Getty Images

Rudy Giuliani’s money problems are deepening as his creditors push for a full review of the $2 million in supposed legal fees owed by ex-President Donald Trump Giuliani, the one-time mayor of New York City who is now best known for losing a $148 million lawsuit and then being disbarred on account of his Trump-related misadventures - claiming he never did get paid.

Giuliani, at a recent deposition, bemoaned continued indifference by Trump’s team to hundreds of his invoices, saying only his own costs have been reimbursed. This was confirmed by no response to attempts from his legal team trying to contact Trump's attorney and Giuliani's spokesman for comment as of Tuesday.

Creditors Seek Trustee

As fears that Giuliani could misappropriate money in his bankruptcy and flout U.S. sanctions, lawyers for some of the former New York City mayor’s creditors recently took extraordinary steps. On Monday, they submitted a filing to U.S.

Bankruptcy Judge Sean Lane asking him to name an independent hand who will manage Giuliani's paycheck. They say a special outside trustee would be best equipped to ensure the unpaid legal fees are fully and independently pursued against Trump as far back as his 2020 presidential campaign.

Creditors argued Giuliani failed to competently serve as a fiduciary, pointing out his dodging tactics. An independent trustee, benefiting from both the resources of the creditors’ committee and a deep bench to navigate through Giuliani’s case is more likely to undertake an aggressive probe into his finances than Trustee Paul Singer.

It has already included questioning those allegations from Giuliani of non-payment for services he did with respect to Trump, which trumped up in sworn testimony were worth around $2 million. The claims came to light in February, as Giuliani disclosed the amount he says is owed each month during a deposition.

Following the post-2020 election legal battles, Giuliani got a $148 million verdict against him in December 2023 for some of his defamatory remarks about two Georgia election workers. Three days after the judgment, Giuliani filed for bankruptcy.

His efforts to liquidate assets so as to provide reparations for his victims were also met with significant opposition by lawyers of creditors at a recent bankruptcy proceeding. In response, they accused him of trying to protect his hidden assets from further discovery just as they were seeking more transparency and the naming a trustee.

Amid the ongoing bankruptcy proceedings, Giuliani faces looming financial and legal challenges in which his creditors seek more transparency — and an ambitious return of tens or even hundreds of thousands on unpaid debts.