A former attorney at the now-defunct Girardi Keese firm has pleaded guilty to contempt of court for not distributing settlement funds meant for the families of victims from a tragic 2018 plane crash.
Mismanagement of Settlement Funds
Keith Griffin, who was associated with the once-prominent attorney Tom Girardi, confessed in court that he disregarded a federal directive to allocate $7.5 million intended for the families of those who lost their lives in the Lion Air Flight 610 disaster. This plea marks another chapter in the ongoing saga of misappropriated client funds that led to Girardi’s federal conviction.
Girardi, recognized in his heyday as one of the nation’s most powerful attorneys, lived a lifestyle of luxury that drew attention, especially with his connections to showbiz through his wife, Erika Jayne, a former star of “Real Housewives of Beverly Hills.” Griffin, at 54 years old and based in Temple City, faced U.S. District Judge LaShonda A. Hunt in Illinois, who scheduled his sentencing for August 6.
Details of the Case
After Girardi Keese filed civil actions against Boeing and reached a settlement in 2020, U.S. District Judge Thomas M. Durkin mandated the immediate distribution of the $7.5 million compensation to the clients. However, Griffin acknowledged his firm’s failure to distribute these funds to the Indonesian widows and orphans, indicating he was aware of the situation yet withheld vital information from a Chicago-based attorney involved in the case.
For eight months, Griffin was conscious of the delay but did not compel Girardi to comply with the court’s order. Eventually, the victims did receive their settlements, thanks to intervention from another law firm’s insurer.
The evidence of Girardi misappropriating funds not only led to his firm’s downfall back in 2018 but also unearthed allegations of ongoing financial misconduct spanning decades. This resulted in him being disbarred in 2022 and a subsequent federal conviction for embezzlement of millions from clients in 2024, with all related activities highlighted during the trial.
Girardi is now serving a seven-year sentence while two other members of his former firm also faced justice for their roles in the scandal. David Lira, Girardi’s son-in-law, pleaded guilty to contempt for failing to follow the settlement order, receiving four months in federal prison. Christopher Kamon, the firm’s ex-CFO, was sentenced to over five years for wire fraud related to the embezzlement scheme, running concurrently with another ten-year sentence for similar crimes in Los Angeles.
