Rudy Giuliani agrees to deal to end bankruptcy, could lead to sale of Palm Beach condo

Former New York City Mayor Rudy Giuliani is struggling financially and may have to sell his waterfront Palm Beach condo to comply with a court order.

Giuliani, who has made headlines as a lawyer for former President Donald Trump, has agreed to a deal that will conclude his personal bankruptcy proceedings and require him to sell either his New York City condo or his Palm Beach condo and pay $100,000 within the next six months, according to a proposed order filed Wednesday in the Chapter 11 case in federal bankruptcy court in the Southern District of New York.

Giuliani filed a certificate of occupancy in Palm Beach County on July 15 to declare the Palm Beach condo his permanent residence, a move that could complicate foreclosure proceedings on that property, which could be protected under Florida law.

Giuliani filed for bankruptcy in December after two Georgia election workers, Ruby Freeman and Wandrea Moss, were awarded $148 million in damages in their defamation lawsuit against him, which was related to false allegations Giuliani made in the media about Freeman and Moss being involved in alleged voter fraud in their state.

The proposed deal still needs to be approved by Judge Sean Lane.

The $100,000 and proceeds from the property’s sale would go toward legal costs owed to Global Data Risk, a forensic accounting firm hired by Giuliani’s creditors that is still owed about $400,000, court documents show.

If the deal is approved, Giuliani must give the $100,000 to his attorneys Berger, Fischoff, Shumer, Wexler and Goodman to pay Global Data Risk. He must then give up either his New York City apartment or his Palm Beach apartment, which is located in the Southlake Condominiums at 315 S. Lake Drive.

As part of the proposed measure, Giuliani must maintain both properties in at least their current condition and purchase home insurance on each property that is at least equal to the amount Global Data Risk owes.

A spokesman for Giuliani did not respond to an emailed request for comment. Giuliani’s spokesman has denied wrongdoing in the case in the past, calling the $148 million verdict unfair. He said it was part of an effort to punish Giuliani “for exposing Hunter Biden’s laptop.”

Giuliani bought the apartment for a recorded $1.41 million in 2010 with his then-wife, Judith Nathan Giuliani, in February 2010. The apartment was last listed for sale in 2019, before the Giulianis’ acrimonious divorce, with an asking price of $3.3 million. But no buyer ever materialized, and Giuliani took sole possession of the apartment as part of the couple’s divorce settlement.

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The listing agents in 2019 were J. Ronnie and Jennifer Hasozbek-Garcia, then of Waterfront Properties and Club Communities but now with Premier Estate Properties. Ronnie Hasozbek-Garcia told the Palm Beach Daily News on Thursday that no one has contacted him or his wife about relisting the condo.

According to court documents, the condo is worth $3.5 million. The Palm Beach County Property Appraiser’s Office website estimates it will be worth $2.67 million in 2022 and $3.07 million in 2023. If Giuliani is unable to sell both properties within the next six months, Global Data Risk could foreclose on both properties, court documents show.

Giuliani was disbarred in New York last month for his role in Trump’s efforts to overturn the 2020 election by making false claims about voter fraud and election interference.

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Giuliani has been struggling financially in recent years. In addition to the election interference verdict and another lawsuit filed by a former employee, he faced an IRS lien on his Palm Beach condo.

He also fell behind on property taxes on the Palm Beach condo. Between Nov. 17 — a little more than two weeks after The Palm Beach Post reported on a creditor’s plans to foreclose on the condo in April — and June 28, Giuliani paid three years’ worth of property taxes totaling $128,769.85, including fees, to the county, according to the Tax Collector’s Office website.

The Southlake condo is located in an iconic serpentine building. The unit, 5D, has two bedrooms and two bathrooms, an east-facing balcony and is within walking distance of Palm Beach’s famous Worth Avenue.

Palm Beach Daily News Editor Darrell Hofheinz contributed to this report.

This article originally appeared on Palm Beach Post: Bankruptcy of former Trump lawyer Rudy Giuliani could lead to sale of Palm Beach condo