Date: 04-20-2021

Case Style:

Case Number: 7:20-cr-00495-VB

Judge: Vincent L. Briccetti

Court: United States District Court for the Southern District of New York (New York County)

Plaintiff's Attorney: United States Attorney’s Office

Defendant's Attorney: Criminal Defense Lawyer Directory

Description: New York City, New York grand theft charge criminal defense lawyer represented Defendant, Gustavo L. Vila, who was charged with stealing approximately $1 million that the Department of Justice’s 9/11 Victim Compensation Fund (“VCF”) had awarded to VILA’s client, a 9/11 first responder.

“Gustavo Vila stole money awarded by the 9/11 Victim Compensation Fund to his client, an NYPD officer and 9/11 first responder. Further, Vila lied to his client for more than three years, telling him that the stolen money had yet to be released by the Fund. Now Gustavo Vila has been sentenced to prison for his betrayal.”

According to the Complaint, the Information, and other court filings and statements made in open court:

In the wake of the September 11 terrorist attacks, Congress created the VCF to provide compensation with federal government funds to any individual who suffered physical harm or was killed as a result of the terrorist attacks, or as a result of the debris removal efforts that took place in the immediate aftermath of those attacks. The original VCF operated from 2001 to 2004. President Obama and President Trump reactivated the VCF, authorizing it to operate through October 2016, and December 2020, respectively. Claimants seeking compensation from the VCF were authorized to work with an attorney and have the attorney, on the claimant’s behalf, submit a claim to, and receive the claimant’s award from, the VCF. An attorney’s fees were limited to 10% of a VCF award.

From at least in or about 2012 through at least in or about 2019, VILA represented a retired New York City Police Department officer (“Victim-1”) in connection with Victim-1’s claim for compensation from VCF. Victim-1 was diagnosed with, and suffered from, serious, life-threatening medical conditions, including cancer, as a result of rescue and recovery work he performed at Ground Zero. Throughout his representation of Victim-1, VILA held himself out as an attorney to Victim-1 and to the VCF, despite the fact that in 2015, VILA was disbarred, after being convicted in Westchester County Supreme Court of grand larceny in the third degree, a felony, for stealing funds from another client.

Despite his disbarment, VILA continued to hold himself out as an attorney to Victim-1 and to the VCF and to represent Victim-1 in connection with his VCF claim. Victim-1, on VILA’s advice, authorized the VCF to deposit any money it awarded Victim-1 directly into VILA’s bank account. On or about September 13, 2016, the VCF authorized an award to Victim-1 of $1,030,622.04 for life-threatening illnesses Victim-1 had sustained from rescue and recovery work he performed as a police officer at Ground Zero. On or about October 12, 2016, the VCF deposited the full amount of Victim-1’s award – mover $1 million – into VILA’s bank account. At that point, VILA was required to distribute all of that money, less 10 percent for his purported attorney’s fees, to Victim-1. VILA, however, represented to Victim-1 that the VCF had only released 10 percent of the award, that is, approximately $103,062, which VILA sent Victim-1 on or about October 26, 2016. That is the only portion of the award that Victim-1 ever received. VILA stole the remaining 90 percent of the award – approximately $927,559.84 – and used those funds for his own personal benefit, including to pay his own taxes and personal loans. Over the next three-plus years, VILA continued to lie to Victim-1, repeatedly telling Victim-1 and his family that the VCF had not yet released the full amount of the award, when in fact, the entire award had been released for Victim-1’s benefit in October 2016.

* * *

VILA, 62, of Yorktown Heights, New York, pled guilty to, and was sentenced on, one count of theft of government funds, in violation of Title 18, United States Code, Section 641. In addition to the 51-month prison term, VILA was sentenced to three years of supervised release and was ordered to forfeit $922,559.84, and to pay restitution to Victim-1 in the amount of $867,870.76.

Ms. Strauss praised the outstanding investigative work of the U.S. Department of Justice Office of the Inspector General's Fraud Detection Office.

The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.

18:641.F PUBLIC MONEY, PROPERTY OR RECORDS
(1)

Outcome: 04/19/2021 38 CONSENT PRELIMINARY ORDER OF FORFEITURE/MONEY JUDGMENT as to Gustavo L Vila. IT IS HEREBY STIPULATED AND AGREED, by and between the United States of America, by its attorney Audrey Strauss, Acting United States Attorney, Assistant United States Attorney, Sarah Kushner of counsel, and the Defendant, and his counsel, Susanne Brody, Esq., that As a result of the offense charged in Count One of the Information, to which the Defendant pled guilty, a money judgment in the amount of $922,559.84 in United States currency (the "Money Judgment"), representing the amount of proceeds traceable to the offense charged in Count One of the Information that the Defendant personally obtained, shall be entered against the Defendant. Pursuant to Rule 32.2(b)(4) of the Federal Rules of Criminal Procedure, this Consent Preliminary Order of Forfeiture/Money Judgment is final as to the Defendant, GUSTAVO L. VILA, and shall be deemed part of the sentence of the Defendant, and shall be included in the judgment of conviction therewith (Signed by Judge Vincent L. Briccetti on 4/19/21)(jw) (Entered: 04/19/2021)
04/19/2021 39 ORDER OF RESTITUTION as to Gustavo L Vila. It is hereby ORDERED that Gustavo L. Vila, the Defendant, shall pay restitution in the total amount of $867,870.76, pursuant to 18 U.S.C. § 3663; 18 U.S.C. § 3663A (MYRA), to the victim of the offense charged in Count One. The name, address, and specific amount owed to the victim are set forth in the Schedule of Victims, attached hereto as Schedule A. Upon advice by the United States Attorney's Office of a change of address of the victim, the Clerk of the Court is authorized to send payments to the new address without further order of this Court. (Signed by Judge Vincent L. Briccetti on 4/19/21)(jw) (Entered: 04/19/2021)
04/19/2021 Minute Entry for proceedings held before Judge Vincent L. Briccetti:Sentencing held on 4/19/2021 for Gustavo L Vila (1) Count 1. Court Reporter Darby Ginsberg. Dft & Atty Susanne Brody and Benjamin Gold pres. AUSA Sarah Kushner pres. Dft is sentenced to 51 Month Imprisonment followed by 3 Years Supervised Release. Standard Conditions 1-12 apply. Special Conditions: Mental Health Outpatient Program.., Provide Financial Information, No new Credit lines without approval by probation, and be supervised by his District of Residence. Special Assessment of $100.00 due immediately. Restitution in the amount of $867,870.76 to the Clerk of the Court for disbursement to Mr. Ferreyra Forfeit a sum of money equal to $922,559.84. (Order signed). Recommend that the dft be designated to a facility where they have Mental Health Programs., and that the dft not be considered for early release other than good behavior reasons. Dft shall surrender by 2pm on 6-3-21. Dft has the right to appeal. Bail continued as previously set (jw) (Entered: 04/19/2021)

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