Saturday, December 10 2005 09:55 Hrs (IST) - World Time -

New York: An Indian American has been arrested for allegedly embezzling millions of dollars from a fund meant to help identify victims of the 9/11 terrorist attacks on the World Trade Center here.

Prosecutors alleged that about $5.5 million had been transferred to bank accounts in India at the instance of Natarajan R Venkataram, a former administrator in the New York city medical examiner's office.

Another former employee of the department, identified as Rosa Abreu, was also arrested along with the 41-year-old Venkataram on Wednesday.

Prosecutors claimed the duo had diverted millions of dollars to companies, some controlled by them or their associates, which did little or no work.

The fund had been set up to buy computer hardware and software to help in the identification of victims.

A major contract worth $11.4 million had been given to an outfit controlled by Venkataram's associate, investigators said.