Girardi, Lira, Kamon Indicted in $3M Lion Air Settlement Scam

CHICAGO — Three California-based insiders at the now-defunct law firm Girardi Keese are facing federal charges for allegedly stealing over $3 million in settlement funds meant for families of victims killed in the 2018 Lion Air Flight 610 crash. Thomas V. Girardi, 83, of Pasadena, Calif., David R. Lira, 62, of Pasadena, Calif., and Christopher K. Kamon, 49, of Palos Verdes and Encino, Calif., were indicted on eight counts of wire fraud and four counts of criminal contempt of court.

The indictment, filed in U.S. District Court in Chicago, alleges the defendants funneled money from Boeing Co. settlement payouts — intended for five grieving families — into the firm’s failing operations. Boeing had wired the funds to Girardi Keese’s trust account after settling lawsuits tied to the Java Sea disaster that killed 189 people. Instead of disbursing the money, Girardi, Lira, and Kamon allegedly rerouted more than $3,069,500 to cover payroll, operational costs, and even hush-money-style settlements for other defrauded clients.

According to prosecutors, the scheme included deliberate lies to keep victims in the dark. The defendants falsely claimed the Covid-19 pandemic delayed disbursements, then later blamed non-existent ‘serious issues’ with Boeing — all while sitting on the cash. These false statements were made with full knowledge that Boeing had already transferred the full settlement amount, the indictment states.

John R. Lausch, Jr., U.S. Attorney for the Northern District of Illinois, slammed the betrayal: ‘The substantial misappropriation alleged in this indictment compounded the grief and anguish of the clients who lost loved ones in the Lion Air crash. Attorneys who violate the trust of their clients and breach a fiduciary duty that is paramount to the practice of law must be held accountable.’

FBI Special Agent-in-Charge Robert W. “Wes” Wheeler, Jr. added: ‘The victims of this crime placed their faith in their attorneys during a time of great vulnerability. Taking advantage of victims of tragedy is a despicable act, and we will continue to seek justice for anyone who takes advantage of innocent Americans in their hour of need.’

The government is seeking forfeiture of $3,069,500. Each wire fraud count carries a maximum penalty of 20 years in federal prison; contempt charges carry penalties at the court’s discretion. Arraignments have not yet been scheduled. The defendants remain presumed innocent until proven guilty in a court of law.