Rudy Giuliani's defense fund could lose massive donation over new lawsuit

A lawsuit filed in Georgia seeks to recover a $100,000 donation to Rudy Giuliani's legal defense fund. The donation came from Matthew Martorano, a Donald Trump supporter accused of participating in an online skincare product scam.

The lawsuit alleges that the donation should be returned to victims of the alleged fraud, according to CNBC. Martorano's software was accused of helping the scammers hide the number of chargebacks they received, which is a sign of potential fraud.

Giuliani's spokesperson said the lawsuit was unrelated to their client. Lawyers for Martorano and the other defendants did not respond to requests for comment, CNBC said.

The Georgia suit follows a federal lawsuit that certified a nationwide class action against the alleged skin care sales scammers at Konnektive LLC. The judge in that case wrote that the plaintiff "has shown by a preponderance of the evidence that Konnektive Defendants deceived banks and credit card companies."

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Martorano has also made other high-dollar political donations, including $5,000 to the Trump Save America Joint Fundraising Committee and $3,330 to Trump's presidential campaign. He and his wife also transferred a house and two properties in Georgia spanning 135 acres to a limited liability corporation for a $0 purchase price.

The suit questioned Martorano's motive for donating to Giuliani, who represented Trump, the presumptive Republican presidential nominee.

Former Georgia Republican Party Chair David Shafer is also represented by one of Martorano's lawyers in a Fulton County criminal case.

Shafer is a co-defendant with Giuliani, Trump, and a dozen more people in that criminal case, which accuses them of conspiracy in trying to overturn Trump's 2020 presidential election loss in the state.

In December, Giuliani filed for bankruptcy protection after a judge ordered him to pay $148 million to two election workers who filed a defamation lawsuit. The $100,000 donation represents 13% of Giuliani's defense fund.