The legal fallout from the collapse of Girardi Keese continues as a federal judge sentenced another former attorney from the once-prominent law firm for his role in mishandled client settlement funds.
Keith Griffin, a former lawyer at the California-based plaintiffs’ firm Tom Girardi founded, received a time-served sentence after pleading guilty to criminal contempt. The case centered on millions of dollars in settlement funds that Girardi Keese failed to distribute to families of victims of the 2018 Lion Air Flight 610 crash for months.
The latest ruling represents another chapter in one of the most closely watched attorney misconduct scandals in modern legal history. Moreover, it serves as another reminder that law firms face increasing scrutiny over their handling of client trust accounts.
Key Takeaways
- Former Girardi Keese attorney Keith Griffin received a time-served sentence in a federal criminal contempt case.
- The case involved delayed distribution of settlement funds owed to families of victims of the 2018 Lion Air Flight 610 crash.
- The judge ordered Griffin to complete two years of supervised release and pay a $100 fine.
- The sentencing marks another legal milestone in the continuing fallout from the collapse of Tom Girardi’s former law firm.
- The case underscores the importance of trust account compliance and ethical handling of client funds.
Former Girardi Lawyer Gets Time Served
U.S. District Judge LaShonda Hunt sentenced Griffin to one day in prison, which he had already served. As a result, he will not return to federal custody.
The court also imposed two years of supervised release and ordered Griffin to pay a $100 fine.
Federal prosecutors had sought a three-month prison sentence. Griffin, however, requested probation, arguing that his role in the misconduct was less significant than others involved. Ultimately, the judge opted for the lighter sentence.
The ruling concludes Griffin’s criminal case but does not diminish the broader impact of the Girardi Keese scandal on the legal profession.
Guilty Plea Stemmed From Settlement Fund Dispute
Griffin pleaded guilty earlier this year to one count of criminal contempt.
The charge arose after he admitted violating a federal court order directing Girardi Keese to distribute settlement money to its clients. Those clients included Indonesian widows and orphans whose family members died in the Lion Air Flight 610 disaster.
Federal authorities alleged that the settlement funds remained unpaid despite repeated court directives. Prosecutors also argued that Griffin failed to disclose critical information about the delayed payments while families continued waiting for compensation.
The case highlights how attorneys can face criminal liability when they fail to comply with court orders involving client funds.
Lion Air Settlement Case
Families filed lawsuits against Boeing after the October 2018 crash of Lion Air Flight 610. The accident claimed the lives of all 189 passengers and crew members.
Girardi Keese represented several victims’ families during the litigation. Boeing later transferred approximately $7.5 million into the firm’s client trust account to satisfy negotiated settlements.
A federal judge ordered the firm to distribute the money promptly. Instead, prosecutors alleged that the firm withheld millions of dollars from the families.
Court records indicate Griffin acknowledged that Girardi Keese did not fully distribute the funds for several months. He also admitted withholding information from a Chicago attorney assisting with the litigation despite repeated inquiries regarding the missing settlement payments.
Another Girardi Attorney Sentenced
Griffin is not the first former Girardi Keese lawyer to face criminal punishment.
Earlier, former attorney David Lira pleaded guilty to criminal contempt in connection with the same settlement dispute. Lira received a four-month prison sentence, followed by home confinement, supervised release, and community service.
The two cases show that federal prosecutors continue pursuing individuals who handled the firm’s client settlement money.
Legal Ethics After Girardi
The sentencing comes years after the spectacular collapse of Girardi Keese, once one of the nation’s most successful plaintiffs’ law firms.
For decades, Tom Girardi built a national reputation representing consumers in high-profile litigation. His legal career inspired public attention through the landmark Erin Brockovich case and other major lawsuits.
However, that reputation unraveled after allegations surfaced that the firm had diverted millions of dollars belonging to clients.
Investigators later uncovered widespread financial misconduct involving settlement proceeds. The revelations ultimately pushed Girardi Keese into bankruptcy and triggered multiple federal investigations.
A federal jury later convicted Tom Girardi in a separate fraud case involving approximately $15 million that prosecutors said he stole from clients. He received an 87-month prison sentence and continues appealing his conviction.
Meanwhile, prosecutors have pursued several former employees connected to the firm’s financial practices.
Why This Case Matters
The Griffin sentencing extends beyond one attorney.
Instead, it reinforces the legal profession’s growing focus on fiduciary responsibility and trust account compliance.
Law firms nationwide have strengthened internal controls over client funds in recent years. Many firms now conduct more frequent trust account audits, expand financial oversight, and implement stricter compliance procedures.
Additionally, partners increasingly monitor settlement distributions to ensure money reaches clients promptly.
Legal ethics experts have repeatedly emphasized that mishandling client funds remains among the profession’s most serious violations. Even attorneys who are not accused of theft may face criminal or disciplinary consequences if they ignore court orders involving client money.
Consequently, the Girardi cases continue influencing law firm governance, compliance programs, and attorney ethics training across the United States.
Client Funds Timeline
October 2018
Lion Air Flight 610 crashes, killing all 189 people aboard.
2020
Settlement funds are deposited into Girardi Keese’s client trust account.
Following Months
Federal courts order immediate distribution of settlement proceeds to victims’ families.
2025
Multiple former Girardi Keese attorneys face criminal proceedings related to withheld settlement funds.
2026
Keith Griffin receives a time-served sentence after pleading guilty to criminal contempt.
Lessons for Attorneys and Law Firms
The Girardi Keese scandal continues serving as a cautionary tale throughout the legal industry.
Successful law firms depend not only on courtroom victories but also on maintaining public trust.
Proper trust account management, transparent financial controls, and strict compliance procedures help protect both clients and attorneys. Furthermore, law firms that invest in ethics training and oversight reduce the risk of costly disciplinary actions and criminal investigations.
As regulators continue examining attorney misconduct involving client funds, the Girardi cases remain a defining example of how ethical failures can damage careers, law firms, and public confidence in the legal profession.
Frequently Asked Questions
Who is Keith Griffin?
Keith Griffin is a former attorney at Girardi Keese who pleaded guilty to criminal contempt after failing to comply with a federal court order involving client settlement funds.
Why was Keith Griffin sentenced?
He admitted violating a court order requiring settlement money from the Lion Air litigation to be distributed to victims’ families.
What sentence did Griffin receive?
The court imposed a time-served sentence, two years of supervised release, and a $100 fine.
What was the Lion Air settlement case?
The case involved settlement payments to families of victims killed in the 2018 Lion Air Flight 610 crash after litigation against Boeing.
What happened to the settlement funds?
Federal prosecutors alleged that millions of dollars remained undistributed despite court orders directing Girardi Keese to pay its clients.
What happened to Tom Girardi?
Tom Girardi was convicted in a separate federal fraud case involving approximately $15 million taken from clients. He was sentenced to more than seven years in federal prison and is appealing his conviction.
Why is this case important for lawyers?
The case highlights the legal and ethical obligations attorneys have when managing client trust accounts. It also demonstrates that courts continue holding lawyers accountable for violations involving client funds.
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Former Girardi Lawyer Avoids More Jail Time first appeared on
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