DOJ asks to dismiss Chicago charges against Tom Girardi

Federal prosecutors in Chicago on Wednesday afternoon moved to dismiss all charges against disbarred attorney Tom Girardi related to over $3 million in stolen settlement funds from Indonesian air crash victims.

"At this point, given that Girardi has already been convicted of stealing from clients and the government in that case has apprised the court of the conduct in this matter surrounding the victim clients, in addition to the fact that Girardi is turning 86 years old within the next month, the government moves to dismiss the superseding indictment and the original indictment against Girardi in this case," the brief in the Chicago case filed by Assistant U.S. Attorney Jared Hasten stated.

Last week, Girardi was hospitalized due to liver dysfunction. The emergency happened a day before he was scheduled to appear in Los Angeles before U.S. District Judge Josephine L. Staton to determine whether he was better suited for prison or lifetime hospital confinement for his California wire fraud conviction.

In an order late Wednesday, Staton ordered Girardi's California counsel to file a sealed declaration with her containing updates on his condition. Depending on which happens first, the deadline for that filing will be either five days from the order's entry or when he's released from the hospital, Staton wrote.

In the Chicago prosecutors' three-page motion, they did not mention Girardi's hospitalization as one of the reasons why they were seeking to drop his charges.

Seema Ahmad, Girardi's federal public defender in Chicago, could not be immediately reached for comment.

The parties are scheduled to appear before U.S. District Judge Mary M. Rowland in a telephonic status conference hearing on Thursday morning in Chicago.

If the request is granted, Girardi would be cleared of multiple wire fraud counts related to a pilfering of millions of dollars in settlement funds intended for the families of those killed in a 2018 Boeing air crash in Indonesia. U.S. v. Girardi et al., 1:23-cr-00054 (N.D. Ill., filed Feb. 1, 2023).

Also charged in the Chicago case is Girardi's son-in-law and former Girardi Keese attorney, David R. Lira, and the defunct firm's financial chief, Christopher Kamon.

However, the government stated they are not dropping the case against Lira, who is scheduled to defend the claims at trial on July 14. Lira, who is practicing with a limited California law license at Engstrom Lipscomb & Lack, denied the allegations and has several pending motions to dismiss the charges.

In Kamon's case, he's expected to enter a guilty plea at Thursday's status conference, according to the government in the Wednesday motion.

Shortly after Girardi's California conviction, related to over $15 million in stolen client funds, Kamon pleaded guilty to aiding and abetting the scheme. Last month, Staton sentenced him to 10 years behind bars.

Girardi, barring any health setbacks, is scheduled to be sentenced in Los Angeles on June 3, his 86th birthday. U.S. v. Girardi et al., 2:23-cr-00047 (C.D. Cal., filed Jan. 31, 2023).