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FDNY, NYPD retirees who ‘faked 9/11 illnesses in scam’ not too sick to have fun

Eighty greedy NYPD and FDNY retirees, whose departments suffered devastating losses on 9/11, collected millions of dollars in disability-pension benefits by pretending they were at Ground Zero and suffered emotional trauma, authorities said Tuesday.

They were among 106 alleged scammers arrested in a $400 million Social Security rip-off — one of the largest in history — that also included city Correction officers and a former Nassau County cop.

Many of them claimed they couldn’t sleep, do simple arithmetic or even leave their own home — but investigators found that they’d been piloting helicopters, riding Jet Skis, teaching karate, deep-sea fishing and even running half-marathons.

“That’s about as inconsistent with being disabled and unable to perform physical or mental chores as you can get,’’ said Manhattan DA Cyrus Vance Jr.

Four ringleaders, including an 81-year-old ex-FBI agent and an 89-year-old pension adviser, instructed retirees how to pocket $20,000 to $50,000 a year in bogus claims. Their kickback fee was 14 monthly Social Security checks.

The group netted more than $21 million since 1988, and authorities said that’s just the tip of the iceberg.

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One of the NYPD and FDNY retirees accused of Social Security disability fraud.
One of the NYPD and FDNY retirees accused of Social Security disability fraud.
One of the NYPD and FDNY retirees accused of Social Security disability fraud.
One of the NYPD and FDNY retirees accused of Social Security disability fraud.
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Richie Cos, one of the NYPD and FDNY retirees accused of Social Security disability fraud.
Richie Cos, one of the NYPD and FDNY retirees accused of Social Security disability fraud.
John Taz Famularo, one of the NYPD and FDNY retirees accused of Social Security disability fraud.
John Taz Famularo, one of the NYPD and FDNY retirees accused of Social Security disability fraud.
One of the NYPD and FDNY retirees accused of Social Security disability fraud.
One of the NYPD and FDNY retirees accused of Social Security disability fraud.
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One of the NYPD and FDNY retirees accused of Social Security disability fraud.
One of the NYPD and FDNY retirees accused of Social Security disability fraud.
Glenn Lieberman is accused of Social Security disability fraud.
Glenn Lieberman is accused of Social Security disability fraud.
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John Minerva, left, with his lawyer, as NYPD and FDNY retirees turned themselves Tuesday.
John Minerva, left, with his lawyer, is accused of being a 'consigliere' in the scam.Dennis A. Clark
Joseph Esposito
Joseph EspositoDennis A. Clark
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Up to 1,000 people could be involved in the scam, “and I can say that ultimately, the estimates add up to $400 million,’’ Vance said, noting the investigation is far from over.

The Post first revealed in 2010 that two dozen retired cops were under investigation for claiming mental illness to receive Social Security disability payments while still holding gun permits.

Their disability applications “indicated that they were incapable of owning firearms,’’ said NYPD Chief of Internal Affairs Charles Campisi.

“However, when we dug deeper and we checked the forms that they filed with the Police Department in order to get pistol permits, they indicated that they were of sound mind. So we had a discrepancy.’’

John Minerva, left, with his lawyer, as NYPD and FDNY retirees turned themselves in Tuesday.Dennis A. Clark

The NYPD and FDNY alleged con artists arrested Tuesday were already retired with disability pensions from their departments — giving them three-quarters pay tax-free instead of the standard 50 percent — when they applied for Social Security benefits.

At least half of them shamelessly exploited the 9/11 terror attacks by saying they were suffering from post-traumatic stress disorder, when some were never at Ground Zero.

They were coached to lie by former cop Joseph Esposito, 70, who is not related to the department’s recently retired chief of department by the same name, prosecutors said.

Esposito filed for his own Social Security disability in 1991, a year after retiring on disability from the NYPD at age 46 for two motor-vehicle accidents “in the line of duty,’’ authorities said.

Many of the retirees said they were so mentally incapacitated that they couldn’t even use a computer, drive a car or fly in a plane.

Joseph EspositoDennis A. Clark

But investigators found a treasure trove of damning evidence on Facebook, Twitter and YouTube — along with car-rental, shopping and airline receipts.

One of the worst alleged offenders was ex-cop Louis Hurtado, who was caught teaching karate. He netted $470,000 and had been conning the system the longest, since 1989, authorities said.

Another defendant, ex-cop Joseph Morrone, was even caught appearing in a TV news story boisterously selling cannoli at the Feast of San Gennaro in Little Italy.

The retirees included 72 ex-NYPD cops, eight former FDNY firemen, five ex-corrections officers and one former Nassau County police officer.

Former cop and a current detectives union official John Minerva, 59, helped Esposito recruit retirees, officials said.

Thomas Hale, the head of a company that helps people prepare their Social Security applications, and Raymond Lavallee, a former FBI agent and ex-Nassau County prosecutor, then allegedly saw the retirees through the process.

Hale and Lavallee were each freed Tuesday on $1 million bail. Esposito also walked on $500,000 bail, and Minerva was freed on $250,000.

All of the men proclaimed their innocence through their lawyers.

“My client’s role in this is minimal at best,’’ said Minerva’s lawyer, Glenn Hardy.

Hale’s lawyer, Joseph Conway, described his client as a “decorated World War II veteran,’’ while Esposito’s attorney, Brian Griffin, said his client “stood in court today and said two very important words. He said the words ‘not guilty.’ ”

Ray Perini, who is defending Lavallee, said, “I am confident that at the end of the day, you’re going to find out that he did the job any lawyer should do. Clients come to him, he sees doctors’ reports, and he advocates.”

But Police Commissioner Bill Bratton said, “As a New Yorker and as a US citizen, I can only express disgust at the actions of the individuals involved in this scheme, particularly the 72 former members of the New York City Police Department who have certainly disgraced themselves, embarrassed their families with their abuse of this system.’’

Additional reporting by Bob Fredericks, Elizabeth Hagen and Kate Sheehy