LOCKPORT—The city is trying to terminate Firefighter Michael Collette, at least in part for acting in a movie while he was off work on disability.

Two sources with knowledge of the details of the case said Thursday that the state Workers’ Compensation Board is about to charge Collette with a Class E felony for allegedly defrauding the disability system.

Penalties would include repayment of all compensation benefits since the finding of fraud, and a lifetime ban from ever receiving such benefits again, said the officials, who asked not to be identified because they were not authorized to speak on a confidential personnel matter.

Minutes of a May 27 executive session of the city Fire Board, disclosed Thursday, show the board voted unanimously that day to begin a disciplinary hearing aimed at firing Collette.

Alderman Joseph C. Kibler, who serves on the board, said the reason for trying to fire Collette was “because of fraud. He was making money while on disability. . . . That’s a no-no.”

Asked how Collette made money, Kibler said, “Well, he made money from that movie, for one thing.”

Collette said in an e-mail, “I can’t comment on what Mr. Kibler said and perhaps he should not be commenting either, as there has not been a hearing and I have not been terminated.”

It was believed he had a small part in the movie “Henry’s Crime,” starring Keanu Reeves, which filmed scenes in downtown Buffalo in December. Many in and out of City Hall were convinced by a photograph published in The Buffalo News or by videotape aired on two Buffalo television newscasts that Collette was the man playing a security guard in a bank robbery scene, filmed Dec. 16.

“Somebody on workers’ comp should not be in a full sprint down Main Street,” said the source, who insisted on anonymity.

Kibler said that was not Collette’s only source of outside income, but he wouldn’t disclose the others. However, it is known that Collette operates a transportation company, Mac Limousine, which provided service for the moviemakers while they were in Buffalo.

Collette, 45, was being paid $516.50 a week from the city’s self-insured workers’ comp fund.

“We don’t tolerate any nonsense, whether it’s from a policeman, a fireman or whoever,” Mayor Michael W. Tucker said.

Tucker said the disciplinary hearing was to have been held Thursday, but it was canceled.

He said that was because new information about Collette that came to light since the May 27 Fire Board meeting is being investigated. Tucker would not disclose any details.

The city has been battling with Collette for more than a year. He went off active duty in March 2009, although he said he hurt his back moving a box of files in the firehouse in October 2008.