Rey E. Grabato II, the son of Mina Mayor Rey P. Grabato and former mayor Lydia Encarnacion Grabato, has been added to the Federal Bureau of Investigation's Most Wanted Fraudsters list following accusations that he orchestrated a massive scheme defrauding roughly 2,000 investors of over US$650 million. The FBI is offering a reward of up to US$150,000 for credible information that leads to his apprehension and subsequent conviction, underscoring the seriousness with which US authorities are pursuing this case.
Grabato faces multiple federal charges including securities fraud, wire fraud, and conspiracy to defraud the United States in connection with tax matters. According to court documents, he served as the former president and majority owner of National Realty Investment Advisors LLC, or NRIA, the company at the centre of the alleged fraudulent operation. The scheme reportedly ran from February 2018 through January 2022, with investigators identifying Hoboken, New Jersey, and the Philippines as locations associated with the suspect.
Prosecutors characterise the operation as a Ponzi scheme in which Grabato and alleged co-conspirator Thomas Nicholas Salzano used deceptive marketing and false representations to convince investors to pour money into NRIA Partners Portfolio Fund I LLC, described as a real estate investment vehicle. The promotional campaign was extensive, utilising thousands of emails, television commercials, radio advertisements, billboards, and direct investor presentations to build credibility and attract fresh capital. Investors in New Jersey and across the nation were particularly targeted by this aggressive outreach.
The scheme operated on a fundamentally dishonest premise, with prosecutors alleging that NRIA presented itself to the public as a financially robust entity generating substantial returns on investments. In reality, the company generated little to no profit and instead depended entirely on money from newly recruited investors to satisfy payment obligations to earlier investors—the classic hallmark of a Ponzi operation. This unsustainable model eventually collapsed when the flow of new investment money could not keep pace with the promised withdrawals.
Beyond the investment fraud allegations, federal prosecutors also accuse Grabato of systematically misappropriating millions of dollars from investor funds for purposes unrelated to promised real estate investments. The diversion of investor capital to personal use represents a particularly egregious violation of trust and fiduciary duty. Meanwhile, Grabato's alleged co-conspirator Salzano was arrested in October 2022, but Grabato remained at large following the formal charges.
A separate tax obstruction scheme attributed to Grabato allegedly operated from November 2007 through August 2022, during which time he is accused of interfering with Internal Revenue Service collection efforts targeting approximately US$26 million in outstanding tax liabilities owed to the federal government. This extended timeline suggests a pattern of systematic financial misconduct spanning more than a decade. The tax-related charges add another layer to the prosecution's case, portraying Grabato as someone who operated outside legal boundaries across multiple domains.
The formal federal arrest warrant was issued on October 12, 2022, after Grabato was indicted in the US District Court for the District of New Jersey in Newark. At the time of the indictment, investigators identified him as residing in Hoboken, New Jersey, though he maintained connections to the Philippines. The FBI notes that Grabato has operated under multiple aliases, including Rey Encarnacion Grabato II, Rey Grabato II, and Rey Li Encarnacion Grabato, suggesting deliberate efforts to obscure his identity.
Grabato's inclusion on the FBI's Most Wanted Fraudsters list places him among an emerging group of high-profile financial fugitives with Filipino connections. The FBI established this dedicated Most Wanted Fraudsters list in June 2026 specifically to heighten public awareness about individuals accused or convicted of major fraud offences who remain at large or evading capture. The designation reflects an intensified federal commitment to dismantling complex financial crime networks and bringing perpetrators to justice.
Other individuals with Filipino ties currently featured on this list include Michael Lizaso Marasigan, a dual Filipino-American citizen with associations to both Guam and the Philippines, who was convicted in May 2025 on charges involving illegal gambling operations, money laundering, and wire fraud. Additionally, John Michael Dimitrion and his wife Julieanne Baldueza Dimitrion appear on the list after pleading guilty in 2009 to orchestrating a mortgage fraud scheme in Hawaii; they fled before their July 2010 sentencing and remain fugitives to this day.
For Malaysian readers and those across Southeast Asia, this case underscores the transnational nature of modern financial fraud and the growing collaboration between law enforcement agencies across jurisdictions. The involvement of individuals with roots in the Philippines but operations spanning multiple US states demonstrates how sophisticated criminal networks exploit gaps between jurisdictions and leverage international mobility to evade detection. The case serves as a cautionary tale about investment opportunities promising outsized returns and the importance of due diligence when evaluating fund managers and investment vehicles.
The US government's commitment to pursuing Grabato, evidenced by the substantial reward and his placement on a high-profile wanted list, signals that distance and international location will not provide sanctuary from prosecution for financial crimes. The FBI is actively soliciting public assistance, urging anyone with information about Grabato to contact their nearest FBI field office or the closest US embassy or consulate. Such international manhunts often succeed through tips from vigilant citizens, making public awareness campaigns an integral component of law enforcement strategy in cross-border fraud cases.
