AP Photo/Seth Wenig

Rudy Giuliani’s bankruptcy creditors have had it with his “egregious spending habits” and “false and misleading” filings — even taking aim at his new “Rudy Coffee” venture — and are aggressively moving for the immediate appointment of a trustee who would seize control of his assets and businesses.

According to Andrew Kirtzman, who covered Giuliani closely for decades, the former New York City mayor once raked in $100 million in five years through his Giuliani Partners consulting firm that he founded a few months after 9/11, but had “squandered” a lot of that wealth in a series of messy divorces and profligate spending habits.

“He lived very well and now he’s penniless and facing prison,” Kirtzman told CNN’s Kaitlan Collins last September, describing how Giuliani and his ex-wife used to burn through $250,000 on “fun” but things had taken a stunning turn for the worse since he got involved with former President Donald Trump.

Among the former Trump attorney’s woes are an IRS lien on his Palm Beach penthouse for a more than half a million dollar tax debt, a $148 million defamation judgment he owes to two Georgia election workers he falsely accused of committing election fraud (plus a second lawsuit the plaintiffs filed after Giuliani refused to stop attacking them), a lawsuit from a former employee accusing him of harassment and wage theft, his suspension from the practice of law and pending disbarment proceedings in New York and D.C., a lawsuit filed by his former friend Robert Costello for nearly $1.4 million in unpaid legal fees, the cancellation of his WABC radio show, and criminal indictments in both Georgia and Arizona for his alleged efforts to attempt to overturn the 2020 election results.

Getting walloped with tax liens, judgments, criminal indictments, and filing for bankruptcy do not seem to have slowed Giuliani down, according to a new filing by his creditors that urges the court to take swift action to preserve what’s left of his assets from his “dishonesty,” “incompetence,” and “gross mismanagement,” reported Law&Crime’s Matt Naham on Wednesday.

“[A] trustee must be appointed,” the creditors’ attorneys wrote in their motion, arguing that Giuliani had “accomplished almost nothing” in the five months since he filed for Chapter 11 bankruptcy, blasting him for “filing false and misleading financial reports, delaying the inevitable monetization of his assets, ignoring this Court’s orders, trying to retain professionals and attempting to relitigate” the $148 million defamation judgment.

In what Naham described as an “eye-popping paragraph,” the creditors accused Giuliani of possible “bankruptcy crimes” that needed investigation because it appeared he was “funneling funds that belong to his creditors to his business and using his business as a personal piggy bank, which is fraudulent”:

Mr. Giuliani is a criminally indicted debtor who claims no income except social security payments. He has been suspended from his job at WABC, and his WABC radio show has been cancelled. The Debtor previously identified this radio show as a source of income for him personally (though he never reported such on monthly operating reports). He has been suspended from the practice of law and thus cannot earn income as a lawyer. He is facing a judgment of $148 million, other claims of many millions more, and self-reports just $10 million of assets. His financial reporting and record-keeping are abysmal, as he commingles his personal affairs with those of his shill businesses. And it follows therefrom that the Debtor cannot find even one accountant willing to work for him. Among other things, the chapter 11 trustee and the Committee will now need to investigate whether the Debtor is liable for bankruptcy crimes through the use of his businesses to divert resources away from his estate and creditors in connection with his purported income that he allegedly never personally received.

Giuliani’s new “Rudy Coffee” venture gets targeted too, for a contract that “directs all payments (‘80% of the net profit of each sale of Rudy Coffee’) to Giuliani Communication’s bank account,” with the creditors accusing the man once revered as “America’s Mayor” of wrongfully trying to divert this income.

Even Giuliani’s Amazon shopping list was under scrutiny, with the lawyers railing about the continuation of his “egregious spending habits” during the bankruptcy proceedings, including a reported “60 Amazon transactions, charges for entertainment such as Netflix, Prime Video, Kindle, Audible, Paramount+ and Apple services and products and numerous Uber rides.”

The creditors’ motion concluded with a proposed order for the bankruptcy judge to sign that would appoint a trustee to “take control of the Debtor’s assets and financial affairs,” including “tak[ing] control of the companies in which the Debtor holds a controlling ownership interest” and manage “all day-to-day operations.”

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