Updated

Five New York Police Department officers smuggled firearms and slot machines they thought were stolen and some even used bolt cutters to pilfer hundreds of boxes of cigarettes from tractor-trailer trucks as part of a 12-person theft ring that was under federal surveillance the entire time, authorities said Tuesday.

Three retired NYPD officers and a New Jersey corrections officer are among the other defendants named in a federal criminal complaint alleging an undercover agent paid them more than $100,000 to moonlight as gun runners while under FBI surveillance. Three current officers also participated in a brazen theft of cigarettes they were told were worth $500,000, the complaint says.

Mayor Michael Bloomberg has long targeted illegal smuggling of guns into the city and said that, if the accusations are true, the officials engaged in "a disgraceful and deplorable betrayal of the public trust."

"Our city has lost too many people -- and too many police officers -- to criminals who buy guns illegally, including Detectives James Nemorin and Rodney Andrews, who were killed trying to take illegal guns off the street in 2003," Mayor Michael Bloomberg said Wednesday.

"The NYPD is the finest police department in the world, and these arrests do nothing to diminish the selfless commitment of the 35,000 men and women who put on a uniform every day, and who put their lives on the line to keep us safe."

The men were eager and willing to smuggle the weapons and commit other crimes "so long as the price was right," U.S. Attorney Preet Bharara said at a news conference announcing the arrests.

Arresting fellow law enforcers in a corruption case "is a heartbreaking thing," Bharara added.

"But it is our duty to enforce the law and to uphold the rule of law -- and to do so perhaps most unflinchingly when we come across people who have chosen to breach that sacred duty, because an officer who betrays his badge betrays every honorable officer as well as every member of the public."

The arrests come amid speculation that other NYPD officers could be facing less-serious criminal charges in a separate investigation of traffic ticket fixing in the Bronx.

Police Commissioner Raymond Kelly said the new case, involving officers assigned in Brooklyn, has no connection to the Bronx probe. He also defended the reputation of the nation's largest police department.

"The vast majority of police officers do outstanding work to protect the city," Kelly said. "A case like this is disheartening to the entire department."

The arrests stem from an FBI-NYPD internal affairs investigation that began in 2009 when a paid FBI informant tipped off authorities that an 18-year NYPD veteran, William Masso, was interested in making money by transporting stolen goods. In the months that followed, the informant and an undercover investigator posing as the ringleader began supplying the defendants and others cigarettes -- purportedly stolen out of state -- for resale in New York, the criminal complaint says.

Court papers described the informant as a non-U.S. citizen who "has been assisting the FBI in exchange for payment and aid in remaining in the United States."

Masso, 47, recruited younger officers from his Brooklyn precinct to join the smuggling ring, authorities said. He instructed the men to carry their badges while transporting the stolen goods and, if they were stopped by police, to say they were doing legitimate off-duty work, they added.

According to the complaint, Masso complained in a taped conversation that the officers weren't getting paid enough.

"They're risking a lot for a little. ... They know what's going and how much trouble they could get in," he said, according to the complaint.

In May, three of the officers and other defendants traveled to Virginia, where they received instructions from the informant and undercover agent on where to find $500,000 worth of cigarettes in trucks parked outside a warehouse, the complaint says. Using a bolt cutter, they broke into the rigs and stole 200 boxes they later delivered to a location on Long Island, east of New York City, it says.

Masso and other defendants also agreed last month to transport 20 weapons from New Jersey to New York using rented mini-vans, the complaint says. The cache was composed of three assault rifles, a shotgun and 16 handguns with serial numbers that had been "obliterated or altered" so they couldn't be traced, it says.

Prosecutors say the officers were unaware that the weapons also had "been rendered inoperable by the FBI," the complaint says. The undercover agent gave four of the police officers about $5,000 each to help transport the guns, it says.

Those charged in the case were each released on $100,000 personal recognizance bond, though Masso was required to wear an electronic bracelet that will force him to remain home unless he is taking his children to or from school, tending to medical, religious or legal issues or looking for a job.

Masso's lawyer, Joseph Mure, said outside court that his client had made many arrests in his long career.

"He's denied the allegations," Mure said, adding that he was interested in seeing what kind of recordings the government had collected.

Bloomberg has inserted himself into the national debate over gun control and heads a national coalition of mayors advocating stricter enforcement.

"Our administration is taking every possible step to crack down on illegal guns and continue making the safest big city in the country even safer," Bloomberg said in a statement Tuesday.

In the Bronx case, a dozen or more officers, including union representatives, are facing allegations they abused their authority by helping friends and family avoid paying traffic tickets.

The gun-smuggling complaint describes the confidential informant being introduced to Masso "as a person who could `fix' the CI's traffic tickets." The officer, it adds, "discussed his willingness to `fix' tickets."

Despite the chatter, "This is not a ticket-fixing case," Bharara said Tuesday.