Rey E. Grabato II, whose father serves as mayor of Mina in Iloilo province and whose mother previously held the same municipal office, now appears on the Federal Bureau of Investigation's Most Wanted Fraudsters list following charges related to one of the largest investment fraud schemes uncovered in recent years. The fugitive is accused of orchestrating a fraudulent real estate investment operation that swindled approximately 2,000 victims, many from New Jersey, out of over US$650 million through deceptive marketing and false promises of financial returns.
The scheme operated through National Realty Investment Advisors LLC, or NRIA, a company where Grabato served as former president and majority owner. Working alongside co-conspirator Thomas Nicholas Salzano, Grabato allegedly crafted an elaborate deception targeting ordinary Americans seeking investment opportunities. The operation relied on sophisticated marketing channels including television commercials, radio advertisements, billboards, direct email campaigns, and in-person investor presentations to build credibility and attract fresh capital.
Prosecutors characterize the arrangement as a textbook Ponzi scheme, where early investors received returns funded by money from subsequent participants rather than genuine profits generated by legitimate business activities. Investigators found that the NRIA Partners Portfolio Fund I LLC, marketed as a real estate fund with substantial earning potential, actually generated minimal or no actual profits. Instead of deploying investor capital into legitimate real estate projects, the company operated in a continuous cycle of seeking new investment to satisfy withdrawal demands from existing participants.
Beyond the core investment fraud, Grabato and his associates allegedly misappropriated millions of dollars in investor funds for personal use, converting money intended for real estate ventures into private wealth. The scale and brazenness of the scheme prompted federal prosecutors to bring multiple charges, including securities fraud, wire fraud, and conspiracy charges related to defrauding the United States government. The operation demonstrates how international actors can exploit American capital markets and investor confidence through aggressive, multi-channel marketing campaigns.
Grabato's alleged criminal activity extended beyond the investment scheme itself. He is also accused of participating in a separate conspiracy to obstruct the Internal Revenue Service's collection efforts targeting approximately US$26 million in unpaid federal taxes. This obstruction scheme allegedly ran from November 2007 through August 2022, suggesting Grabato's involvement in fraudulent activities spanned more than a decade. The combination of securities fraud and tax obstruction underscores the scope of the federal investigation into his conduct.
A federal arrest warrant was issued on October 12, 2022, after Grabato faced charges in the United States District Court for the District of New Jersey in Newark. At the time of indictment, authorities identified him as maintaining residences in both Hoboken, New Jersey and the Philippines, indicating his ability to move between jurisdictions. His co-conspirator Salzano was apprehended in October 2022, but Grabato managed to evade capture and remains a fugitive. The FBI has posted a reward of up to US$150,000 for information leading to his arrest and eventual conviction.
The investigation revealed that Grabato operated under multiple aliases including Rey Encarnacion Grabato II, Rey Grabato II, and Rey Li Encarnacion Grabato, suggesting deliberate efforts to obscure his identity and complicate law enforcement tracking. This use of alternative names raises questions about whether he may have been conducting additional fraudulent activities under assumed identities. The alias strategy indicates sophisticated understanding of how to evade detection across financial systems and jurisdictional boundaries.
Grabato's addition to the FBI's Most Wanted Fraudsters list places him among several individuals with Filipino or Philippine connections accused of major financial crimes. Michael Lizaso Marasigan, a Filipino-American with ties to Guam and the Philippines, was convicted in May 2025 on charges involving illegal gambling, money laundering, and wire fraud. The list also includes John Michael Dimitrion and his wife Julieanne Baldueza Dimitrion, who pleaded guilty in 2009 to orchestrating a mortgage fraud scheme in Hawaii before absconding to avoid sentencing in July 2010.
The FBI established its Most Wanted Fraudsters list in June 2024 as part of a strategic initiative to prioritize the pursuit of high-profile financial crime fugitives. This formal designation serves to elevate Grabato's case in public consciousness and encourage international cooperation in locating him. For law enforcement agencies across Southeast Asia, including Malaysian authorities, the inclusion of individuals with regional connections on such lists creates opportunities for coordinated tracking and prevention of cross-border financial crimes.
For Malaysian investors and financial regulators, this case illustrates the persistent risks posed by offshore investment schemes operated by individuals with access to multiple jurisdictions. The aggressive marketing tactics employed by Grabato and his associates—particularly through digital and broadcast media—represent methods that could similarly target Malaysian retail investors unfamiliar with fraudulent schemes. The scale of the deception, affecting thousands of victims over a four-year period, underscores how even supposedly sophisticated investment vehicles require rigorous due diligence and verification.
The political dimension adds complexity to this case, as Grabato's family connections to local political office in Iloilo raise questions about governance and oversight at the municipal level in the Philippines. While familial ties to political position do not inherently indicate complicity, the case demonstrates how individuals with access to legitimate family status can leverage that credibility to build fraudulent enterprises. This pattern merits attention from Philippine authorities regarding transparency and accountability within local governance structures.
The ongoing investigation signals that American law enforcement agencies will continue pursuing fraud fugitives with international connections, including those who may seek refuge in the Philippines or other Southeast Asian nations. The substantial reward amount reflects the high priority assigned to apprehending Grabato, and any information from regional sources could prove crucial. For individuals or organizations with knowledge of Grabato's whereabouts or activities, contact with local FBI offices, American embassies, or consulates remains the primary reporting mechanism available to support this investigation.
