David Ranta, who had always maintained his innocence, was released last year having been jailed for the 1990 murder of Rabbi Chaskel Werzberger. Ranta, 59, had a heart attack the day after he was freed.
Werzberger, from Brooklyn, was shot dead during the bungled robbery of a jewelry store.
The bungled police investigation was conducted by Detective Louis Scarcella, who is accused of having invented confessions and pressuring witnesses in many cases leading to heavy sentences.
"I am pleased that my office was able to move quickly to resolve this claim.