Tom Girardi Case: Lawyer Pleads Guilty to Contempt
David Lira, son-in-law of Tom Girardi, has pleaded guilty to contempt of court for mishandling settlement funds in the Lion air crash case. This admission puts the disgraced attorney’s associate on track for a prison sentence of up to eight years. The guilty plea specifically relates to the violation of a judge’s order regarding payments to the families of the 2018 Indonesian Lion air plane crash victims. News Directory 3 brings you this developing story that also spotlights the broader allegations of fraud.Lira’s sentencing is scheduled for October,and this plea comes on the heels of Girardi’s own recent sentencing. Discover what further revelations this scandal will bring.
Lira Pleads Guilty in Girardi Case: Contempt of Court Admission
david Lira, 65, of Pasadena, Calif., and son-in-law of disgraced attorney Tom Girardi, admitted guilt Thursday to one count of contempt of court. The plea stems from his defiance of a chicago judge’s order regarding the distribution of settlement funds to families of victims in the 2018 Indonesian Lion Air plane crash.
The plea comes days after Girardi, 86, was sentenced to seven years in prison for stealing client funds in a separate Los Angeles case. Both attorneys represented families of the victims of the Boeing 737-MAX crash, securing $7.5 million in settlements in 2020. However, the Indonesian clients did not receive their full payments.
According to the plea agreement, Lira knew Girardi did not fully pay the Lion Air clients, violating U.S. district Judge Thomas durkin’s orders. Durkin initiated a criminal examination, leading to wire fraud and other charges against lira and Girardi in 2021. The charges against Girardi in Chicago were dropped last month.
Lira, married to Girardi’s daughter Jacqueline, joined Girardi Keese in 1999. He resigned six months before the firm’s 2020 collapse after confronting Girardi about the missing Lion Air payments. He did not, however, alert the victims or authorities.
Damon Cheronis,Lira’s defense attorney,stated that the plea agreement did not allege fraud on Lira’s part. “Mr. Lira continually asked Mr.Girardi to pay these clients their rightful settlement money pursuant to the court order, however Girardi did not,” Cheronis said.
Lira is scheduled for sentencing Oct. 8 and faces a potential prison term of six to eight years under federal sentencing guidelines.
jay Edelson, a Chicago-based lawyer who worked with Girardi and Lira on the Lion Air case, brought the unpaid settlements to the judge’s attention. “We’re pleased that David Lira, after years of portraying himself as an innocent bystander, has finally admitted he is a criminal,” Edelson said. “We remain hopeful that the other criminals who helped Girardi pull off the largest Ponzi scheme in the history of the plaintiff’s bar will also face disbarment and long prison sentences.”
Edelson’s insurance provider ultimately ensured the widows and orphans received their settlement payments.
The State Bar is pursuing disciplinary actions against Lira and two other Girardi Keese attorneys.Lira currently practices law in Century City, but is restricted from handling client funds.
What’s next
Lira awaits sentencing in October, while further investigations continue into the collapse of Girardi Keese and the handling of client funds. The legal community watches closely as the full extent of the Girardi scandal unfolds.