By: Benyamin Davidsons

On Monday, a federal judge warned former New York City Mayor Rudy Giuliani that he has reason to be “extremely concerned” with his alleged lack of compliance in his bankruptcy case.

As reported by the NY Post, Judge Sean Lane has been asked to appoint a trustee to oversee Giulian’s finances by a group of creditors who argue Giuliani can’t be trusted because of “dishonesty, incompetence and gross mismanagement of [his] affairs.”

The “record in this case suggests that I should be extremely concerned” Lane said in White Plains federal bankruptcy court. The judge listened to arguments that Giuliani has been failing to comply with orders in the Chapter 11 matter, according to a recent report by Law & Crime. Judge Lane said it was “highly problematic,” but didn’t immediately decide whether to forcibly appoint a trustee to take over Giuliani’s business affairs.

Per the Post, Giuliani, 80, filed for bankruptcy in December in order to manage his estimated $150 million in debts. The politician’s financial woes came after he was found guilty in a colossal $148 million lawsuit for defaming Georgia election workers Ruby Freeman and Shay Moss by claiming they carried out fraud in the 2020 presidential election. Mr. Giuliani had earned himself the nickname “America’s Mayor” for his response to the 9/11 terror attacks, having served as NYC’s 107th mayor from 1994 to 2001. The longtime lawyer, and former U.S. Attorney General in NY, served as advisor to Donald

Trump during his 2016 presidential campaign and early administration. In April 2018, Giuliani joined President Trump’s personal legal team, remaining on it during the 2020 presidential election. His activities as Trump’s attorney got him into a good deal of trouble, and have led to allegations that he engaged in corruption and profiteering. Guiliani has since been disbarred from practicing law.

Rachel Strickland, Freeman’s lawyer in the defamation case, told Judge Lane on Monday that Giuliani is “shrewd” and “not a dottering 80-year-old,” per Law & Crime. He’s been “funneling money” through his company Giuliani Communications, Strickland said. The lawyer alleged that there were “huge red flags” raised by Giuliani’s filing operating reports, including incorrect and missing information. As per previous reports, Guiliani’s prior bookkeeper quit, and he has been having trouble finding a replacement. Strickland also said that Giuliani agreed to stop publicly defaming Moss and Freeman, but posted on X (formerly Twitter) on June 3, saying he had evidence “of voter fraud”, which she said was an obvious reference to her client. Despite his “knowledge of a legal obligation to be silent … he just won’t follow the law,” Strickland said.

Mr. Giuliani’s lawyer, Gary Fischoff, shot back maintaining that there was “nothing unusual” about how Giuliani was running things at his communications company. The judge countered that claim, saying:

“Then you have to provide information.” “It can’t be on a trust me basis,” the judge added. Per the Post, Fischoff admitted to the judge that his client hasn’t yet provided full information about the money being used to run Giuliani Communications. He has been trying to improve “his reporting,” Fishoff said, noting Giuliani has been “slow to adapt.”

Judge Lane countered that he could appoint a trustee simply based on “gross mismanagement,” adding there didn’t necessarily have to be “bad intent.” The judge also noted the “troubling fact” that Giuliani hadn’t yet found a new accountant.