Oct. 11 (Bloomberg) -- Adam Gadahn, a U.S.-born member of the al-Qaeda terrorist group, was indicted on a treason charge by a federal grand jury in Santa Ana, California.

Gadahn, whose last known address was in Orange County, California, is considered a fugitive and is believed to be living in Pakistan, the Justice Department said. He is the first American to be charged with treason since the World War II era, the department said.

``A charge of treason is exceptionally severe and it is not one we bring lightly,'' said Deputy Attorney General Paul McNulty at a news conference in Washington. ``But this is the right case for this charge.''

Gadahn, 28, has appeared in five videotapes distributed by al-Qaeda, including two last month, making threats against the U.S., according to the indictment. He calls himself ``Azzam the American.''

In the first video in 2004, Gadahn said he had joined al- Qaeda and pledged that ``the streets of America shall run red with blood.'' His most recent message was timed to coincide with the fifth anniversary of the Sept. 11 attacks, prosecutors said. On the tape, Gadahn praised the pilots involved and called the U.S. ``enemy soil.''

Authorities announced a $1 million reward for information leading to Gadahn's arrest or conviction. The Federal Bureau of Investigation also placed him on its list of most wanted terrorists.

The indictment, which supersedes previous charges filed under seal, also accuses Gadahn of providing material support to terrorists. The charge of treason carries a maximum penalty of death.

To contact the reporter on this story: Robert Schmidt in Washington at rschmidt5@bloomberg.net.

Last Updated: October 11, 2006 17:32 EDT