Judge ends Rudy Giuliani bankruptcy case, says he flouted the process with his lack of transparency

Judge ends Rudy Giuliani bankruptcy case, says he flouted the process with his lack of transparency
Former New York Mayor Rudy Giuliani. (Reuters)
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Updated 13 July 2024
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Judge ends Rudy Giuliani bankruptcy case, says he flouted the process with his lack of transparency

Judge ends Rudy Giuliani bankruptcy case, says he flouted the process with his lack of transparency

NEW YORK: A judge threw out Rudy Giuliani ‘s bankruptcy case on Friday, slamming the former New York City mayor as a “recalcitrant debtor” who thumbed his nose at the process while seeking to shield himself from a $148 million defamation judgment and other debts.
US Bankruptcy Judge Sean Lane criticized Giuliani for repeated “uncooperative conduct,” self-dealing, and a lack of transparency. The judge cited failures to comply with court orders, failure to disclose sources of income, and his apparent unwillingness to hire an accountant to go over his books.
“Such a failure is a clear red flag,” Lane wrote.
Dismissing the case ends his pursuit of bankruptcy protection, but it doesn’t absolve him of his debts. His creditors can now pursue other legal remedies to recoup at least some of the money they’re owed, such as getting a court order to seize his apartments and other assets.
Giuliani is now free to also pursue an appeal of the defamation verdict, which arose from his efforts to overturn Republican Donald Trump’s 2020 presidential election loss.
Lane indicated at a hearing Wednesday that he would probably dismiss the case. Giuliani’s lawyer had floated other options to keep the case alive, but agreed ultimately that dismissing it was the best way forward. The dismissal includes a 12-month ban on Giuliani filing again for bankruptcy protection.
“Transparency into Mr. Giuliani’s finances has proven to be an elusive goal,” Lane wrote, and he “sees no evidence that this will change.”
Among his concerns, the judge said, were that Giuliani funneled his income — including at least $15,000 a month from his now-canceled talk radio show — into companies he owned; never reported any income from those entities; failed to disclose that he had started promoting his own “Rudy Coffee” brand; and was late to disclose a contract he has to write a book.
Giuliani’s spokesperson Ted Goodman — drawing a parallel to what he deemed the “grossly unfair” defamation case — said Friday that the bankruptcy matter had been “burdened with many of the same voluminous and overly broad discovery requests and other actions.” Among them, he claimed, were leaks “intended to harm the mayor and destroy his businesses.”
Goodman ascribed political motives to Giuliani’s legal troubles, stating without evidence that they were meant to punish him for investigating President Joe Biden’s son, Hunter, and “to deter anyone else from asking questions or getting to the truth.” Nevertheless, he said, they’re confident “our system of justice with be restored and the mayor will be totally vindicated.”
Giuliani, a longtime Trump ally, filed for bankruptcy last December just days after the eye-popping damages award to former Georgia election workers Ruby Freeman and Wandrea “Shaye” Moss. The bankruptcy filing froze collection of the debt.
A lawyer for Freeman and Moss accused Giuliani at Wednesday’s hearing of using bankruptcy as a “bad-faith litigation tactic” and a “pause button on his woes,” and urged Lane to dismiss it so they could pursue the damages they were awarded.
“Ruby Freeman and Shaye Moss have already waited too long for justice,” the women’s lawyer, Rachel Strickland, said Friday. “We are pleased the court saw through Mr. Giuliani’s games and put a stop to his abuse of the bankruptcy process. We will begin enforcing our judgment against him ASAP.”
The other people and entities to whom Giuliani owes money wanted to keep the bankruptcy case going with a court-appointed trustee taking control of Giuliani’s assets.
Earlier this month, Giuliani requested the case be converted to a Chapter 7 liquidation — in which an appointed trustee would sell off assets to help pay creditors.
Giuliani’s lawyer Gary Fischoff reconsidered that idea at Wednesday’s hearing and pushed to dismiss the case instead, noting that administrative fees related to liquidation would “consume if not 100 percent, a substantial portion of the assets.”
Freeman and Moss can now bring their effort to collect on the award back to the court in Washington, D.C., where they won their lawsuit. The women said Giuliani’s targeting of them after Trump narrowly lost Georgia to Biden led to death threats that made them fear for their lives.
The bankruptcy is one of a host of legal woes consuming the 80-year-old Giuliani, the ex-federal prosecutor and 2008 Republican presidential candidate who was once heralded as “America’s Mayor” for his calm and steady leadership after the Sept. 11, 2001, terrorist attacks.
Last week, he was disbarred as an attorney in New York after a court found he repeatedly made false statements about Trump’s 2020 election loss. He is also facing the possibility of losing his law license in Washington after a board in May recommended that he be disbarred.
In Georgia and Arizona, Giuliani is facing criminal charges over his role in the effort to overturn the 2020 election. He has pleaded not guilty in both cases.
When he filed for bankruptcy, Giuliani listed nearly $153 million in existing or potential debts, including almost $1 million in state and federal tax liabilities, money he owes lawyers, and many millions of dollars in potential judgments in lawsuits against him. He estimated he had assets worth $1 million to $10 million.
In his most recent financial filings in the bankruptcy case, he said he had about $94,000 cash in hand at the end of May while his company, Giuliani Communications, had about $237,000 in the bank. A main source of income for Giuliani over the past two years has been a retirement account with a balance of just over $1 million in May, down from nearly $2.5 million in 2022 after his withdrawals, the filings say.
In May, he spent nearly $33,000 including nearly $28,000 for condo and co-op costs for his Florida and New York City homes. He also spent about $850 on food, $390 on cleaning services, $230 on medicine, $200 on laundry and $190 on vehicles.


Rohingya refugees stranded on boat off Indonesia

Rohingya refugees stranded on boat off Indonesia
Updated 7 sec ago
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Rohingya refugees stranded on boat off Indonesia

Rohingya refugees stranded on boat off Indonesia
  • Authorities block migrants from disembarking at tourist beach ‘in case they escape’
JAKARTA: At least 75 Rohingya refugees including four children were stranded aboard a migrant boat off the coast of western Indonesia on Wednesday after authorities blocked them from landing at a tourist beach.

Security officers prevented the Rohingya from disembarking at Leuge beach in Aceh province and ordered them to stay aboard the boat. Police were deployed to monitor the beach, while local residents took photos of the boat and provided the refugees with food.
“For now, they are not allowed to disembark, considering today is a public holiday. Many tourist activities are taking place ... there are concerns that they might blend in with the crowd and escape,” local official Rizalihadi said.
“The temporary policy is for them to remain on the boat while waiting for representatives from the UN High Commissioner for Refugees and the International Organization for Migration to arrive.”

The Muslim minority Rohingya are persecuted in Myanmar, and thousands risk their lives each year on long and dangerous sea journeys to Malaysia or Indonesia.

Meta agrees to pay $25 million to settle lawsuit from Trump after Jan. 6 suspension

Meta agrees to pay $25 million to settle lawsuit from Trump after Jan. 6 suspension
Updated 9 min 35 sec ago
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Meta agrees to pay $25 million to settle lawsuit from Trump after Jan. 6 suspension

Meta agrees to pay $25 million to settle lawsuit from Trump after Jan. 6 suspension

WASHINGTON: Meta has agreed to pay $25 million to settle a lawsuit filed by President Donald Trump against the company after it suspended his accounts following the Jan. 6, 2021, attack on the Capitol, according to three people familiar with the matter.
It’s the latest instance of a large corporation settling litigation with the president, who has threatened retribution on his critics and rivals, and comes as Meta and its CEO, Mark Zuckerberg, have joined other large technology companies in trying to ingratiate themselves with the new Trump administration.
The people familiar with the matter spoke on the condition of anonymity Wednesday to discuss the agreement. Two people said that terms of the agreement include $22 million going to the nonprofit that will become Trump’s future presidential library and the balance going to legal fees and other litigants.
Zuckerberg visited Trump in November at his private Florida club as part of a series of technology, business and government officials to make a pilgrimage to Palm Beach to try to mend fences with the incoming president. At the dinner, Trump brought up the litigation and suggested they try to resolve it, kickstarting two months of negotiations between the parties, the people said.
Meta also made a $1 million donation to Trump’s inaugural committee and Zuckerberg was among several billionaires granted prime seating during Trump’s swearing-in last week in the Capitol Rotunda, along with Google’s Sundar Pichai, Amazon’s Jeff Bezos and Elon Musk, who now owns the platform X, formerly known as Twitter.
Ahead of Trump’s inauguration, Meta also announced that it was dropping fact-checking on its platform — a longtime priority of Trump and his allies.
Trump filed the suit months after leaving office, calling the action by the social media companies “illegal, shameful censorship of the American people.”
Twitter, Facebook and Google are all private companies, and users must agree to their terms of service to use their products. Under Section 230 of the 1996 Communications Decency Act, social media platforms are allowed to moderate their services by removing posts that, for instance, are obscene or violate the services’ own standards, so long as they are acting in “good faith.” The law also generally exempts Internet companies from liability for the material that users post.
But Trump and some other politicians have long argued that X, formerly known as Twitter, Facebook and other social media platforms, have abused that protection and should lose their immunity — or at least have it curtailed.
The Meta settlement comes after ABC News agreed last month to pay $15 million toward Trump’s presidential library to settle a defamation lawsuit over anchor George Stephanopoulos’ inaccurate on-air assertion that the president-elect had been found civilly liable for raping writer E. Jean Carroll.
The network also agreed to pay $1 million in legal fees to the law firm of Trump’s attorney, Alejandro Brito.
The settlement agreement describes ABC’s presidential library payment as a “charitable contribution,” with the money earmarked for a non-profit organization that is being established in connection with the yet-to-be-built library.
The Wall Street Journal was first to report on the settlement.


Trump officials discussing tightening curbs on Nvidia’s China sales, sources say

Trump officials discussing tightening curbs on Nvidia’s China sales, sources say
Updated 25 min 39 sec ago
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Trump officials discussing tightening curbs on Nvidia’s China sales, sources say

Trump officials discussing tightening curbs on Nvidia’s China sales, sources say
  • Conversations to restrict shipments of those chips to China are in very early stages
US President Donald Trump’s administration is considering tightening restrictions on artificial intelligence leader Nvidia’s sales of its H20 chips designed for the China market, three people familiar with the matter said.
Conversations to restrict shipments of those chips to China are in very early stages among Trump officials, the people said, adding the idea has been under consideration since Democratic former President Joe Biden’s administration. H20 chips can be used to run AI software and were designed to comply with existing US curbs on shipments to China, spearheaded by Biden.
The White House did not respond to requests for comment. Nvidia said in a statement it is “ready to work with the administration as it pursues its own approach to AI.”
Nvidia shares, which were already down for the day, added slightly to losses after the news, first reported by Bloomberg.
Worries are mounting that China is catching up to the US in AI development after China’s DeepSeek
last week launched a free assistant
it says uses less data at a fraction of the cost of incumbent players’ models, possibly marking a turning point in the level of investment needed for AI.
“This topic has been discussed for more than half a year,” among high-level officials, said Lennart Heim, a researcher at RAND, saying it was a recommendation made during the Biden administration as well. “DeepSeek highlights it,” he added.
Biden, who left office this month, put in place a raft of restrictions barring exports of AI chips to China and capping their shipment to a host of other countries. However, some AI chips, including Nvidia’s H20 can still be lawfully shipped to China.

Trump White House rescinds memo freezing federal money after widespread confusion

Trump White House rescinds memo freezing federal money after widespread confusion
Updated 26 min 53 sec ago
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Trump White House rescinds memo freezing federal money after widespread confusion

Trump White House rescinds memo freezing federal money after widespread confusion
  • Although Trump had promised to turn Washington upside down if elected to a second term, the effects of his effort to pause funding were being felt far from the nation’s capital

WASHINGTON: President Donald Trump’s budget office on Wednesday rescinded a memo freezing spending on federal loans and grants, less than two days after it sparked widespread confusion and legal challenges across the country.
The memo, which was issued Monday by the Office of Management and Budget, had frightened states, schools and organizations that rely on trillions of dollars from Washington.
Administration officials said the pause was necessary to review whether spending aligned with Trump’s executive orders on issues like climate change and diversity, equity and inclusion programs.
But on Wednesday, they sent out a two-sentence notice rescinding the original memo. The reversal was the latest sign that even with unified control of Washington, Trump’s plans to dramatically and rapidly reshape the government has limits.
Administration officials insisted that despite the confusion, their actions still had the intended effect by underscoring to federal agencies their obligations to abide by Trump’s executive orders.
“The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments,” White House press secretary Karoline Leavitt said, blaming the confusion on the courts and news outlets, not the administration. “This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending.”
The White House’s change in direction caught Congress off guard, particularly Trump’s Republicans allies who had defended him throughout the brief saga.
“This is Donald Trump. He throws hand grenades in the middle of the room, and then cleans it up afterwards,” said Sen. Kevin Cramer of North Dakota. “I just think the guy’s a genius.”
Cramer acknowledged the initial memo may have generated too much political heat, with red and blue states raising alarms over the funding freeze. But the senator suggested Trump “maybe didn’t understand the breadth” of what had been proposed.
But Democrats said the White House had overreached beyond what Americans want.
“Most people voted for cheaper eggs,” said Sen. Martin Heinrich of New Mexico. “They did not vote for this chaos.”
The funding pause was scheduled to go into effect at 5 p.m. Tuesday. It was stayed by a federal judge until at least Monday after an emergency hearing requested by nonprofit groups that receive federal grants. An additional lawsuit by Democratic state attorneys general was also pending.
After the initial memo was distributed, federal agencies were directed to answer a series of yes or no questions about each program by Feb. 7. The questions included “does this program promote gender ideology?” and “does this program promote or support in any way abortion?”
Although Trump had promised to turn Washington upside down if elected to a second term, the effects of his effort to pause funding were being felt far from the nation’s capital. Organizations like Meals on Wheels, which receives federal money to deliver food to the elderly, were worried about getting cut off. Even temporary interruptions in funding could cause layoffs or delays in public services.
On Tuesday, Trump administration officials said programs that provide direct assistance to Americans, including Medicare, Social Security, student loans and food stamps, would not be affected.
However, they sometimes struggled to provide a clear picture. Leavitt initially would not say whether Medicaid was exempted from the freeze, but the administration later clarified that it was.
Democratic critics of the order moved swiftly to celebrate the memo’s rescinding.
“This is an important victory for the American people whose voices were heard after massive pressure from every corner of this country,” said Sen. Patty Murray of Washington. She said Trump had “caused real harm and chaos for millions.”
Senate Democratic leader Chuck Schumer of New York said that “Americans fought back and Donald Trump backed off.”


Trump’s Pentagon lashes out at retired general Milley, yanks security detail

Trump’s Pentagon lashes out at retired general Milley, yanks security detail
Updated 47 min 58 sec ago
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Trump’s Pentagon lashes out at retired general Milley, yanks security detail

Trump’s Pentagon lashes out at retired general Milley, yanks security detail
  • Milley served as Joint Chiefs chairman under Trump and Biden
  • The retired general has called Trump “fascist to the core“

WASHINGTON: New US Defense Secretary Pete Hegseth, in one of his first acts in the job since being appointed by President Donald Trump, has revoked the personal security detail and security clearance for retired Army general and former chairman of the Joint Chiefs of Staff Mark Milley.
Milley, who served as the top US military officer during some of Trump’s first presidential term, became a leading critic of him after retiring as a four-star general in 2023 during former President Joe Biden’s administration and has faced death threats. Milley will also face an inquiry by the Pentagon inspector general’s office into his conduct that could lead to him being bumped down in rank.
Among other criticisms, Milley was quoted as calling Trump “fascist to the core” in the book “War” by journalist Bob Woodward published last year.
The moves to punish Milley, which also include removal of his two portraits in the Pentagon, came as the Pentagon mobilizes to support Trump’s immigration crackdown and to conform to his conservative revamp of policies on personnel.
These include executive orders that aim to ban transgender people from the armed forces, elimination of diversity, equity and inclusion initiatives and to reinstate thousands of troops who were kicked out of the military for refusing orders to take COVID-19 vaccines during the pandemic.
Hegseth’s moves may have a chilling effect on the Pentagon top brass, whose jobs call for them to provide unvarnished military advice even when it runs counter to policies they are tasked to execute.
The Pentagon said the decisions on Milley were meant to underscore the importance of the chain of command. Trump, as president, is commander in chief of the US military.
“Undermining the chain of command is corrosive to our national security, and restoring accountability is a priority for the Defense Department under President Trump’s leadership,” said Hegseth’s chief of staff, Joe Kasper.
Democratic lawmakers slammed the move.
“The administration has placed Milley and his family in grave danger, and they have an obligation to immediately restore his federal protection,” Senator Jack Reed, the top Democrat on the Senate Armed Services Committee, said in a statement.
Some former government officials are given security detail after retirement because of the threats they may face. Trump has taken away security details of other former officials since taking office, including that of his former national security adviser John Bolton as well as former top diplomat Mike Pompeo.
In the aftermath of Trump’s supporters storming the US Capitol on Jan. 6, 2021, in a failed attempt to overturn his 2020 election loss to Biden, Milley called China to reassure Beijing of US stability. Trump, in a social media post, described the phone call as “an act so egregious that, in times gone by, the punishment would have been DEATH.”
Some Trump supporters, seeing Milley as disloyal to Trump, had wanted him called back to active duty and tried for treason. Milley received a pardon from Biden on the last day of his presidency on Jan. 20 in a move the outgoing president said was aimed at protecting him and others from political persecution.
Hegseth has said he believes there are too many four-star generals and that nobody is above review.
“We won World War Two with seven four-star generals. Today we have 44 four-star generals,” Hegseth said at his confirmation hearing. “There’s an inverse relationship between the size of staffs and victory on the battlefield.”
Hegseth has also lashed out at Milley in his latest book, including a sentence using an expletive toward him.
Milley’s representatives did not immediately respond to a request for comment. The actions against Milley were first reported by Fox News on Tuesday.
A portrait of Mark Esper, army secretary in Trump’s first administration, was also removed from the Pentagon on Wednesday.
Esper, who was also defense secretary in Trump’s first administration, called him a threat to democracy in the run-up to the 2024 election.
A spokesperson for the US Army Center of Military History said the removed portraits remained Army property and will be stored at the Army Museum Support Center at Fort Belvoir, Virginia.
Milley, as chairman of the Joint Chiefs of Staff, was Trump’s top military adviser between 2019 and early 2021 and had a dramatic falling out with his boss.
At his retirement ceremony in 2023, Milley took a veiled swipe at Trump, saying US troops take an oath to the Constitution and not a “wannabe dictator.” Trump later that day lashed out at him with a series of insults, calling Milley “slow moving and thinking” and a “moron.”