Former Mayor of New York City Rudy Giuliani speaks to reporters as he leaves his apartment building in August 2023 (AP Photo/Seth Wenig).
The “specialized” forensic financial advisor hired by creditors to probe Rudy Giuliani’s assets during his now dismissed bankruptcy responded Thursday that the former New York City mayor is on “another baseless and bad faith crusade” to avoid paying more than $300,000 in fees.
In August, Global Data Risk filed its fee application and demanded $324,843.75 for “1,181.25 hours of services” and $6,854.29 more in expenses racked up over the course of the bankruptcy, totaling the fee demand at $331,698.04.
Just over a week ago, Giuliani filed documents looking to slice the professional fees he owes nearly in half, claiming that he was “overbilled” due to “duplicative time entries” and “excessive” research-related services. He asked, therefore, for a reduction of $151,662.50 from the tab, a discount of roughly 46 percent.
As Law&Crime has reported, U.S. Bankruptcy Judge Sean Lane previously commented that Giuliani was fortunate that the Official Committee of Unsecured Creditors, was represented by the law firm Akin Gump Strauss Hauer & Feld LLP on a pro bono basis, otherwise the hundreds of thousands in estimated Global Data Risk fees that startled his lawyer in court could realistically have been “much higher.”
Global Data Risk emphasized what could have been in its response, asserting that Giuliani, rather than being overbilled, actually “got an incredible deal” under the circumstances, including GDR’s “blended and discounted hourly rate.”
“Even after dismissal of his bankruptcy case, the Debtor has launched another baseless and bad faith crusade in this Court, this time in opposition to GDR’s Application for final fees and expenses,” the filing began. “It is disappointing, but unsurprising, given the tenor of the case prior to dismissal: after seven and a half months in bankruptcy—all of which were characterized by the Debtor’s delay, obfuscation and attempts to reap the rewards of bankruptcy without adhering to its burdens—the Debtor abruptly reversed course and obtained dismissal of his chapter 11 case in the name of avoiding the looming potential appointment of a chapter 11 trustee.”
“As has been repeated by the case parties ad nauseum [sic], the Debtor chose to file for chapter 11, and he consequently must bear the burdens of what such a filing entailed. Here, that burden is paying administrative expenses for the fees and expenses of professionals retained by the Committee. Akin Gump Strauss Hauer & Feld LLP, which served as counsel to the Committee, did not charge any fees and expenses to the estate, serving in its role entirely pro bono,” the filing continued. “Similarly, GDR agreed to a significantly reduced, blended hourly rate of $275 for all timekeepers assigned to this matter. In other words, the Debtor, who could not possibly have expected this case to generate zero administrative expenses, got an incredible deal with respect to Committee advisor fees.”
Calling Giuliani’s objection to the fee number “meritless,” Global Data Risk said it would be “absurd and completely unfair” not to compensate each of the “team members” who attended meetings. That’s not “duplicative,” the firm said.
“[I]t strains credulity to imagine how else meetings are supposed to work other than by having multiple people attend,” the filing said, with emphasis.
The only reduction that Global Data Risk is agreeing to is the sum of $8,801.69, and that’s not because of “concerns” Giuliani raised. Rather, the U.S. Trustee’s Office weighed in.
“As demonstrated by this additional agreed reduction, GDR has always acted in good faith and cooperatively with the parties in this case,” the filing concluded. “The same cannot be said for the Debtor.”
The post ‘Specialized’ forensic financial advisor insists Rudy Giuliani ‘got an incredible deal’ and is on ‘another baseless and bad faith crusade’ to avoid paying up first appeared on Law & Crime.
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