Joseph Salvati, left, and Peter Limone embrace outside the federal courthouse in Boston on Thursday after they were awarded a 01.75 million settlement for their wrongful conviction and three decade imprisonment. The two men were released from prison in 2001 after it was learned that the FBI withheld evidence of their innocence to protect an informant.

Boston ? In a stinging rebuke of the FBI, a federal judge on Thursday ordered the government to pay a record judgment of nearly $102 million because agents withheld evidence that would have kept four men from spending decades in prison for a mob murder they did not commit.

Judge Nancy Gertner told a packed courtroom that agents were trying to protect informants when they encouraged a witness to lie, then withheld evidence they knew could prove the four men were not involved in the 1965 murder of Edward “Teddy” Deegan, a small-time thug shot in an alley.

Gertner said Boston FBI agents knew mob hitman Joseph “The Animal” Barboza lied when he named Joseph Salvati, Peter Limone, Henry Tameleo and Louis Greco as Deegan’s killers. She said the FBI considered the four “collateral damage” in its war against the Mafia, the bureau’s top priority in the 1960s.

‘Nothing can compensate’

Tameleo and Greco died behind bars, and Salvati and Limone spent three decades in prison before they were exonerated in 2001. Salvati, Limone and the families of the other men sued the federal government for malicious prosecution.

“Do I want the money? Yes, I want my children, my grandchildren to have things I didn’t have, but nothing can compensate for what they’ve done,” said Salvati, 75.

“It’s been a long time coming,” said Limone, 73. “What I’ve been through – I hope it never happens to anyone else.”

The case is only the latest to highlight the cozy relationship Boston mobsters enjoyed with FBI agents for decades. Former Boston agent John Connolly was sentenced in 2002 to 10 years in prison for his role in protecting two organized crime kingpins, including one who remains a fugitive.

Gertner said FBI agents Dennis Condon and H. Paul Rico not only withheld evidence of Barboza’s lie, but told state prosecutors who were handling the Deegan murder investigation that they had checked out Barboza’s story and it was true.

Judge: FBI to blame

“The FBI’s misconduct was clearly the sole cause of this conviction,” the judge said.

The government had argued federal authorities had no duty to share information with state officials who prosecuted the men. Federal authorities cannot be held responsible for the results of a state prosecution, a Justice Department attorney said.

Gertner rejected that argument.

“The government’s position is, in a word, absurd,” she said.

A Boston FBI spokeswoman referred calls to the Department of Justice. Charles Miller, a spokesman for the Justice Department, said officials would have no immediate comment.

Gertner awarded $26 million to Limone, $29 million to Salvati, $13 million to Tameleo’s estate and $28 million to Greco’s estate. The wives of Limone and Salvati and the estate of Tameleo’s deceased wife each received slightly more than $1 million. The men’s 10 children were each awarded $250,000.

Exonerated in 2001

At the time of Deegan’s slaying, Tameleo and Limone were reputed leaders of the New England mob, while Greco and Salvati had minor criminal records.

Deegan’s murder had gone unsolved until the FBI recruited Barboza to testify against several organized crime figures. Barboza wanted to protect a fellow FBI informant, Vincent “Jimmy” Flemmi, who was involved in the Deegan slaying, and agreed to testify for state prosecutors in the case, plaintiff’s attorneys said.

Tameleo died in prison in 1985 after serving 18 years. Greco died in prison in 1995 after serving 28 years.

Salvati was sentenced to life in prison as an accessory to murder. He was released from prison when his sentence was commuted in 1997, after serving a little more than 29 years. Limone served 33 years in prison before being freed in 2001.

Salvati and Limone were exonerated in 2001 after FBI memos dating back to the Deegan case surfaced during probes into the Boston FBI’s relationship with gangsters and FBI informants Stephen “The Rifleman” Flemmi, Vincent’s brother, and James “Whitey” Bulger, who has been on the FBI’s “10 Most Wanted” list for years.