According to the station, $30,000 to $50,000 was paid to former city workers who claimed to be mentally scarred and unable to work. Many were caught working, a violation of benefits, it said.
Others who claimed to have been affected by their efforts on 9/11 were not even near ground zero that day, according to the report.
(Read more: Tax identity theft a growing epidemic: IRS)
The alleged fraud cost taxpayers hundreds of millions of dollars in improper Social Security benefits.
Law enforcement sources told NBC New York that 106 people are expected to be charged, and hundreds of other former city workers now face scrutiny in a growing investigation. The charges will be announced Tuesday, the station said, adding that spokesmen for law enforcement agencies probing the case declined to comment ahead of the announcement.
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