Once hailed as a 9/11 hero, a former top official of the city Medical Examiner’s Office has been busted with his girlfriend for ripping off millions in federal funds meant to help identify victims of the terror attacks, authorities announced yesterday.
Natarjan “Raju” Venkataram, 41, and his subordinate Rosa Abreu, 38, were arrested “very suddenly” on Wednesday night when investigators spotted them lugging suitcases out of Venkataram’s Rego Park, Queens, apartment. Authorities feared they were fleeing the country, prosecutor Deborah Landis said in court.
Officials said they believe the two were fleeing to India, where an estimated $5.5 million of the $10 million or more they’re suspected of embezzling has been socked away in bank accounts.
According to a criminal complaint filed in Manhattan federal court, the two steered federally funded contracts and payments to companies that did little or no work for the coroner’s office, which in turn funneled money to sham companies set up and controlled by the couple.
They were able to pull off the scam because of Venkataram’s position as director of management information services in the ME’s office, and Abreu’s position as director of records, the complaint said.
Officials said that even before the terrorist strike, the two inflated invoices and submitted bills for goods and services that weren’t provided.
“But after the tragedy of Sept. 11, their greed was unbridled,” charged Rose Gill Hearn, commissioner of the city Department of Investigation.
She said the two “took advantage of a national tragedy” and stole funds provided to the ME’s office to buy computer hardware, software and support services to help identify victims.
“Contracts were deliberately inflated so they could siphon more money from the government, and, in turn, taxpayers,” she said.
The city began probing them in October 2004, after a co-worker blew the whistle on their close relationship with a vendor, Comprehensive Computer Resources (CCR), the complaint states.
The agency’s investigation revealed that the devious duo had steered $11.4 million in FEMA funds to CCR, which was controlled by a Venkataram associate, the complaint notes.
The associate, who is cooperating with authorities, said most of the money he received was transferred by either Venkataram or Abreu to companies they controlled, according to the complaint.
One company receiving illegally diverted funds, Infodata Associates Corp, had Abreu’s aunt listed as president.
Another firm, A & D Marketing Corp., was ostensibly run by Abreu’s stepmother and had Venkataram’s home address listed as its headquarters.
A third company, Trade A2Z, had Venkataram’s roommate, Luis Ney Gonzalez, listed as its president.
In an incriminating taped conversation, the head of CCR was instructed by Venkataram to blame everything on Gonzalez if he was questioned by the Department of Investigation.
In the same conversation, in Hindi, Venkataram acknowledged the money he was ripping off had come from FEMA, authorities said.
Venkataram was hailed as a 9/11 hero in October 2002 for designing a database system for identifying victims of the terrorist attacks.
“In our office, in the information technology arena, Mr. Venkataram is our hero,” his boss was quoted as saying at the time.
Venkataram was ordered held Thursday on $1 million bail. He was expected to secure his release by putting up $450,000 cash. Once making bail, he’d be placed on home confinement.
Abreu has not yet had a bail hearing. Both face up to 10 years in jail if convicted of fraud.
kati.smith@nypost.com