David Lira, the son-in-law of disgraced attorney Tom Girardi, was sentenced to four months in prison Monday for covering up the fact that Girardi withheld settlement funds from clients whose relatives had died in a 2018 Indonesian plane crash.
Lira was a long-time attorney at Girardi’s now-defunct law firm and helped obtain a historic $7.5-million payout for a group of Indonesian widows and orphans in 2020. After Lion Air Flight 610 crashed into the Java Sea, killing all 189 people on board, Girardi and Lira’s lawsuit held Boeing accountable for the 737 Max’s faulty design and the company’s failure to properly disclose problems with the aircraft’s automated flight-control system.
But then Girardi misappropriated some $3 million of the settlement funds, in part, to fund his lavish lifestyle with his wife, “Real Housewives of Beverly Hills” star Erika Jayne.
Girardi was sentenced this summer to seven years in prison by a Los Angeles judge for stealing from his clients.
In June, Lira pleaded guilty in Illinois federal court to one count of contempt of court for defying a Chicago judge’s order concerning the distribution of settlement funds. After Judge Thomas M. Durkin ordered that withheld payments be sent to clients immediately, Lira continued to cover for Girardi, who failed to distribute the funds. He will begin serving his sentence in February.
Under the plea deal, prosecutors dropped other charges against Lira, including eight counts of wire fraud as well as two false statement charges.
Federal prosecutors sought a three-year prison sentence against Lira for his role in the legal fraud scheme, arguing that his lies to clients and to Judge Durkin warranted a meaningful term of imprisonment.
“Instead of ringing the alarm bell, defendant [Lira] covered for Girardi and lied to the victim clients repeatedly,” wrote U.S. Atty. Andrew Boutros in the government’s sentencing memo. “Defendant’s lies to the victim clients perpetuated Girardi’s theft in real time.”
Lira’s attorney, Damon Cheronis, had sought a more lenient sentence involving no custodial time. He argued in his sentencing memo that Lira is a “good man who made a serious mistake” and has “already paid a tremendous price” for failing to disclose Girardi’s actions.
Cheronis also submitted more than 240 letters from judges, former clients, present clients, colleagues and family members about Lira’s strength of character and integrity over his more than 30year legal career. Cheronis believes their testimonies helped influence U.S. District Judge Mary Rowland’s decision to issue a four-month sentence instead of the government’s 36-month recommendation.
“I think the judge looked at his conduct and also took into account that he didn’t create this mess, he didn’t make any money out of it,” Cheronis said. “He, in fact, tried to get these clients paid.”
According to court documents, Lira told Girardi to pay the clients numerous times, but never reported his failure to do so to Judge Durkin.
In addition to the four-month prison term, Lira was sentenced to 200 hours of community service, four months of home confinement and two years of court-supervised release.
The stack of letters submitted in support of Lira include notes from several of Girardi’s relatives, including his brother, attorney John Girardi, and his daughter, Jacqueline Lira, who is married to Lira.
Jacqueline Lira’s letter directly contrasted the characters of her father and husband, saying that she regards Lira with respect but Girardi with great shame.
“My father was all about himself, and I don’t think he ever did anything for anyone else except when it would benefit him,” she wrote. “David always puts others first, whether it’s his family, friends or clients.”
Dozens of prominent lawyers in Los Angeles as well as several accomplished retired judges pleaded for a lenient sentence for Lira.
Retired Judge Victoria Gerrard Chaney spoke of Lira’s “exemplary character” and his reputation among judges for being “brilliant, always prepared and respectful.”
She also discussed the far-reaching impact his involvement in the Girardi scandal has had on his personal and professional life. He was forced to step aside from a nomination as president of the L.A. chapter of the American Board of Trial Advocates, lost an opportunity to work at a new law firm, had his bank accounts temporarily closed and suffered incalculable representational damage, she said.
Lira is currently ineligible to practice law due to the criminal case in Illinois, according to the California Bar. A consumer alert has been added to his profile informing the public that disciplinary actions are pending against him.
Times staff writer Matt Hamilton contributed to this report.
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