Disbarred attorney allegedly stole nearly $1m from retired NYPD cop who contracted cancer from Ground Zero

Gustavo Vila, 62, is accused of stealing government funds from a client who was awarded money from the September 11th Victims Compensation Fund

Vila was arrested and charged on Thursday for allegedly stealing government funds (Lawyers.com)

A disbarred New York attorney allegedly stole nearly $1m from a retired NYPD cop who contracted cancer after working on Ground Zero, federal officials said.

Gustavo Vila, 62, of Yorktown Heights, reportedly represented the retired cop who sought compensation from the September 11th Victim Compensation Fund even though his attorney privileges had been revoked in 2015.

The fund awarded the cop $1m to compensate for "serious, life-threatening medical conditions" he received during the rescue and recovery of Ground Zero.

But Vila held onto the compensation for three years and falsely told the cop that it had yet to be released, prosecutors said.

The lawyer went on to spend some of the money to pay off his own taxes, according to a Southern District of New York (SDNY) complaint filed in White Plains. Part of the money also went into an account that belonged to Vila's then-wife, prosecutors said.

"Vila allegedly attempted to profit off of the suffering of a retired NYPD officer who risked his life at Ground Zero," special agent Kenneth Diffenbach said in a statement. "Because of Vila's alleged greed, the victim never received about $1 million he was awarded from the 9/11 Victims Compensation Fund."

In total, the victim was awarded $1,030,622 in 2016 but he only received about $103,000 from the lawyer, prosecutors said.

The scheme then fell apart in February after the cop called the fund to enquire about receiving the rest of his compensation. He was told the money had already been paid out in full four years prior, according to the complaint.

Vila was arrested on Thursday and arraigned later that day.

He was charged with stealing government funds and could face up to 10 years in prison if convicted.