David Lira, 65, of Pasadena, has pleaded guilty to one count of contempt of court. This follows legal proceedings against his father-in-law, Tom Girardi, who was recently sentenced to seven years in prison for stealing client funds. Lira’s charge stems from defying a judge’s order regarding the distribution of settlement money intended for families who lost relatives in a 2018 Indonesian plane crash.

Lira and Girardi had secured $7.5 million in settlements from Boeing for the Lion Air 737-MAX crash victims in 2020. However, the Indonesian clients did not receive their full payments. Evidence later revealed that Girardi used client funds to finance a lavish lifestyle, supported by his wife, Erika Jayne, of “Real Housewives of Beverly Hills” fame.

Details of the Plea Agreement

According to the plea agreement, Lira “knew that Girardi did not pay the Lion Air Clients’ settlement funds in full, in contravention of [U.S.District] Judge (thomas) Durkin’s orders, despite [the Indonesian clients’] inquiries about and demands for their Settlements.”

“We’re pleased that David Lira, after years of portraying himself as an innocent bystander, has finally admitted he is a criminal.”

Judge Durkin initiated a criminal investigation, and in 2021, Chicago prosecutors filed charges of wire fraud against both Lira and Girardi. The charges against Girardi, 86, were dropped last month. Girardi was separately convicted of wire fraud in Los Angeles.

Lira’s Role at Girardi Keese

Lira, married to Girardi’s daughter Jacqueline, joined Girardi Keese in 1999. Even tho frequently enough referred to as a senior partner, Girardi was the firm’s sole owner.lira left the firm six months before its collapse in 2020, after confronting Girardi about the missing Lion Air settlement money. He did not, though, report Girardi’s actions to the authorities or inform the victims.

Damon Cheronis, Lira’s defense attorney, stated that “the plea agreement did not assert any acts of fraud on the part of Mr.Lira,” adding, “Mr. Lira continually asked Mr. Girardi to pay these clients their rightful settlement money pursuant to the court order, however Girardi did not.”

Lira’s sentencing is scheduled for Oct. 8. While prosecutors have not specified a recommended sentence, the plea agreement indicates that he could face six to eight years in prison under federal sentencing guidelines.

Reactions and Aftermath

Jay Edelson, a Chicago-based lawyer who worked with Girardi and Lira on the Lion Air case, brought Girardi’s non-payment 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 told The Times. “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.”

The Lion Air victims eventually received their settlement payments through Edelson’s insurance provider. The State Bar is also pursuing disciplinary measures against Lira and other Girardi Keese attorneys. Lira is currently practicing law at a Century City firm, but is restricted from handling client funds.