Giuliani creditors want evidence of Trump’s $2m arrangement with his ex-lawyer

The filing comes as the creditors committee is ‘discussing’ forcing Mr Giuliani to sue the former president for $2m

Bankrupt former New York City Mayor Rudy Giuliani is being asked to turn over proof that his former client Donald Trump owes him millions.

Attorneys for the Committee of Unsecured Creditors — a group that represents those who Mr Giuliani either owes or soon could — filed a motion in bankruptcy court on Thursday evening requesting discovery into Mr Giuliani’s personal and business finances.

The Independent reported previously that the creditors are “discussing” forcing Mr Giuliani to sue Mr Trump to retrieve more cash that could soon belong to them. If any documentation is obtained, this could fuel pursuing any litigation against the former president.

Mr Giuliani indicated at a February hearing that he is owed $2m in unpaid legal fees for Mr Trump for the effort he “spearheaded” to overturn the 2020 election result. He explained at the hearing that the arrangement between him and Mr Trump was a “word-of-mouth situation,” suggesting a verbal agreement was made between the two men.

Based on this claim, it’s unclear whether Mr Trump, the Trump campaign, and/or the Republican National Committee might owe Mr Giuliani money.

In the 7 March filing, the committee requested access to “all Documents and Communications concerning the bases, evidence and work product” related to “any claims for unpaid legal fees against Donald J. Trump.”

The filing also requested evidence to “identify the nature of any legal services that you have performed, or continue to perform,” for the former president.

While the former mayor claimed he was never paid his wages, he has said he was paid for some — but not all — of his expenses. If he is able to produce these communications and documentation, it could serve as a clue as to which entity or individual owes Mr Giuliani the rest of the alleged unpaid amount.

The attorneys explained their requests, citing “substantial doubt” over “Giuliani’s willingness and ability to comply fully with his disclosure obligations in the Chapter 11 Case.”

Former New York Mayor Rudy Giuliani departs the US District Courthouse after he was ordered to pay $148 million in his defamation case in Washington (REUTERS)

They underscored that “Giuliani has alleged that he has approximately $10.6 million of assets, which amount is dwarfed by nearly $153 million in liabilities.”

Due to the “magnitude” of these liabilities, the former mayor “has substantial motivation to continue his historical pattern of financial obfuscation and discovery misconduct,” which is why it is seeking “formal authority” to seek this information from Mr Giuliani, the lawyers wrote.

The Independent previously reported that others had knowledge of a verbal agreement between the two men or had overheard it. Giuliani associate Maria Ryan sent an email, obtained by The New York Times in 2021, that was reportedly sent to Trump campaign officials and suggested that Mr Giuliani was going to be paid $20,000 a day for his work.

The email reportedly claims that Mr Giuliani began working on election litigation on 4 November 2020 – one day after Election Day.

The $2m figure seems to equal the $20,000 day rate over a three-month span, from the November 2020 election, when Mr Giuliani led efforts to overturn the election, through to February 2021, when Trump adviser Jason Miller said Mr Giuliani is “not currently representing President Trump in any legal matters.”

Any legal action Mr Giuliani is forced to take by the bankruptcy court against his close ally Mr Trump appears to go against his personal wishes, with Ted Goodman, Mr Giuliani’s political advisor, previously telling The Independent “Mayor Giuliani will not be suing President Trump.” A spokesperson for Mr Giuliani did not immediately respond to a request for comment regarding the new court filing, another step in the committee forcing Mr Giuliani to do just that.