06/01/2012 09:55 am ET

Diego Palacios, NYPD Officer, Charged With Lying About Driver Trying To Run Him Down (VIDEO)

An NYPD officer has been indicted on felony charges for lying in an official police report about a man trying to run him down with his car, an alleged lie that landed the innocent homeowner in jail for three nights.

In February, 30-year old Officer Diego Palacios claimed John Hockenjos, an MTA engineer living in Sheepshead Bay, attempted to run Palacios down at "a high rate of speed" which Palacios reported caused him to "jump out of the way to avoid being hit by defendant’s vehicle.”

But a surveillance video later surfaced showing Hockenjos slowly pulling into his driveway while Palacios stood still-- a far cry from the life-threatening scenario the officer painted.

Hockenjos was exonerated nearly a month after his February 5 arrest. He told The Daily News, "I'm traumatized. It was the worst experience of my entire life."

Thursday's indictment charges Palacios with falsifying records and five types of lying which could put him behind bars for four years.

Hockenjos is reportedly planning to sue both Palacios and the city.

Watch the surveillance video below: