The son-in-law of disgraced attorney Tom Girardi, David Lira, has been sentenced to four months in prison for reportedly covering up the fact that his father-in-law withheld settlement funds from clients whose relatives were fatal victims of the tragic 2018 Indonesian plane crash.
The defendant was a long-time attorney at his father-in-law's now-defunct law firm and was said to have helped obtain a historic $7.5 million payout for a group of Indonesian widows and orphans in 2020.
David Lira Sentenced to Jail
That payout came after Lion Air Flight 610 crashed into the Java Sea, tragically taking the lives of all 189 people who were onboard. Girardi and Lira's lawsuit held the company, Boeing, accountable for the aircraft's faulty design, which was a 737 Max. They also cited the company's failure to properly disclose issues with the plane's automated flight-control system.
However, at that time, Girardi was found to have misappropriated roughly $3 million of the settlement money, partly to fund his lavish lifestyle with his wife, Erika Jayne. This summer, a Los Angeles judge sentenced Girardi to seven years in prison for stealing from his clients, according to the Los Angeles Times.
In June, Lira pleaded guilty in Illinois federal court to one count of contempt of court for defying the order of a Chicago judge regarding the distribution of settlement funds. After he was ordered by Judge Thomas M. Durkin to send the withheld funds to clients immediately, Lira still covered up for Girardi in failing to do so.
Under the latest plea deal, prosecutors agreed to drop other charges against Lira, including eight counts of wire fraud and two false statement charges. They sought a three-year prison sentence against the defendant for his role in his father-in-law's legal fraud scheme.
Legal Fraud Scheme
Lira's attorney, Damon Cheronis, said in an email that they asked and hoped for a non-custodial sentence, which they believed would have been enough under the circumstances. He added that his client has already paid a steep price and noted his otherwise exemplary career, Reuters reported.
The 65-year-old defendant was described by his attorney as a "good man who made a serious mistake." He was initially charged alongside his father-in-law, Girardi, and Christopher Kamon. The latter is the former chief financial officer of their defunct law firm, Girardi Keese.
In the government's sentencing memo, U.S. Atty. Andrew Boutros said that instead of notifying authorities, Lira covered for his father-in-law and lied to the victims of the crash. He added that his lies perpetuated Girardi's theft, as per Yahoo News.