Disbarred Lawyer Steals $1M From 9/11 First Responder

WHITE PLAINS, NY – Gustavo L. Vila, a disbarred attorney, is facing federal charges for allegedly pilfering approximately $1 million from the 9/11 Victim Compensation Fund (VCF) intended for a New York City police officer who responded to the September 11th attacks. Vila was arrested today and presented in White Plains federal court before United States Magistrate Judge Paul E. Davison.

According to Acting U.S. Attorney Audrey Strauss, Vila allegedly lied to his client, an NYPD officer and 9/11 first responder, for over three years, claiming the funds hadn’t been released by the VCF. The deception continued even after Vila lost his license to practice law, holding himself out as an attorney despite being disbarred. “Gustavo Vila stole money awarded to his client – an NYPD officer and 9/11 first responder – by the 9/11 Victim Compensation Fund,” Strauss stated. “Now Gustavo Vila has been charged with theft of government funds.”

Kenneth R. Dieffenbach, Special Agent in Charge of the DOJ-OIG Fraud Detection Office, minced no words. “Vila allegedly attempted to profit off of the suffering of a retired NYPD officer who risked his life at Ground Zero. Because of Vila’s alleged greed, the victim never received about $1 million he was awarded from the 9/11 Victims Compensation Fund.”

Court documents reveal that Vila represented Victim-1, a retired NYPD officer diagnosed with cancer and other life-threatening conditions due to his rescue and recovery work at Ground Zero. In May 2013, Vila submitted a claim to the VCF, directing the awarded funds – approximately $1,030,622.04 – to a bank account controlled by his law firm. The VCF deposited the full amount on October 12, 2016. Vila was obligated to distribute the funds to his client, minus a legal fee of 10%, but allegedly kept almost the entire sum for personal use, including paying his own taxes.

The scheme continued for years. From October 2016 to February 2020, Vila allegedly concealed the deposit from Victim-1, providing false information about the status of the claim. Despite repeated inquiries, the victim received nothing. The VCF, created by Congress to compensate those harmed by the 9/11 attacks and subsequent debris removal, was initially active from 2001-2004 and later reactivated by Presidents Obama and Trump.

Vila faces charges of theft of government funds. If convicted, he could face significant prison time and be forced to repay the stolen funds. The DOJ-OIG continues to investigate, seeking to hold accountable those who exploit tragedies for personal gain. This case serves as a grim reminder that even in the aftermath of national trauma, predators lurk, willing to prey on the vulnerable.