Rey E. Grabato II, whose father serves as mayor of Mina in Iloilo province and whose mother previously held the same municipal office, has become the latest addition to the FBI's roster of most wanted fraud fugitives. The 31-year-old, who operated out of Hoboken, New Jersey, stands accused of orchestrating an elaborate scheme that defrauded approximately 2,000 investors of more than US$650 million between February 2018 and January 2022. The FBI is offering a bounty of up to US$150,000 for information that leads to his arrest and conviction.
Grabato's alleged fraud centred on his ownership and leadership of National Realty Investment Advisors LLC, or NRIA, a company that operated under the veneer of legitimacy whilst conducting what federal prosecutors have characterised as a textbook Ponzi operation. Working in concert with co-conspirator Thomas Nicholas Salzano, Grabato purportedly deployed sophisticated marketing machinery to lure unsuspecting investors, particularly targeting hundreds of residents in New Jersey. The operation employed aggressive tactics including thousands of targeted emails, television and radio advertisements, billboard campaigns, and in-person investor presentations designed to project an image of financial stability and profitability.
The crux of the scheme involved attracting capital through what the defendants represented as the NRIA Partners Portfolio Fund I LLC, marketed as a supposedly sound real estate investment vehicle. Court documents reveal that investors were systematically misled regarding the fund's financial health and income-generating capacity. In reality, the operation generated minimal or negligible profits and instead relied upon the classic Ponzi mechanism of cycling new investor money to satisfy withdrawal demands from earlier participants. This architectural flaw ultimately proved unsustainable, leading to significant losses for those who failed to exit before the collapse.
Beyond the basic investment fraud, prosecutors allege that Grabato and his associates engaged in brazen misappropriation of investor capital. Millions of dollars allegedly earmarked for legitimate investment purposes were instead diverted for personal use, representing a secondary theft layered atop the fraudulent scheme. This pattern of conduct suggests a calculated operation rather than a simple case of poor investment returns.
The charges against Grabato extend beyond conventional securities fraud. Federal authorities have also brought wire fraud and conspiracy charges, reflecting the interstate and international nature of the scheme. Additionally, prosecutors have accused him of participating in a separate conspiracy to thwart the Internal Revenue Service's collection efforts on approximately US$26 million in unpaid federal tax obligations. This obstruction scheme allegedly ran from November 2007 through August 2022, suggesting a much longer history of deceptive conduct than the main investment fraud.
A federal arrest warrant was issued on October 12, 2022, after Grabato was formally charged in the US District Court for the District of New Jersey in Newark. His co-conspirator Salzano was apprehended that same month, but Grabato managed to evade capture. The indictment identified him as holding connections to both Hoboken and the Philippines, reflecting the transnational character increasingly common in modern fraud cases. Authorities note that Grabato has operated under multiple aliases including Rey Encarnacion Grabato II, Rey Grabato II, and Rey Li Encarnacion Grabato, suggesting a deliberate attempt to obscure his identity across different jurisdictions and business entities.
The case carries particular significance for Southeast Asian readers given Grabato's Philippine heritage and family connections. His prominent family background, with his father currently serving as mayor and his mother having previously held the same office, demonstrates how fraud networks can develop across borders and penetrate civic structures. This connection also highlights the vulnerability of diaspora communities to investment schemes perpetrated by individuals leveraging cultural and familial trust networks to gain credibility.
Grabato's inclusion on the FBI's Most Wanted Fraudsters list places him among an expanding cohort of individuals, many with Filipino connections, targeted by American law enforcement for high-profile fraud offences. The list itself, established in June 2026 to concentrate public and law enforcement focus on major fraud fugitives, includes other cases relevant to the region. Michael Lizaso Marasigan, a dual Filipino-American citizen with ties to Guam and the Philippines, was convicted in May 2025 on charges encompassing illegal gambling, money laundering, and wire fraud. John Michael Dimitrion and his wife Julieanne Baldueza Dimitrion, who maintain connections to Hawaii, pleaded guilty to a mortgage fraud scheme in 2009 but fled before sentencing and remain at large.
The creation and publicisation of the FBI's Most Wanted Fraudsters list reflects a strategic shift in American law enforcement priorities. Rather than allowing fugitives to fade into obscurity, federal authorities now leverage technology and public awareness campaigns to maintain pressure on high-profile cases. This approach has proven effective in other contexts and may eventually corner even well-connected fugitives operating across multiple jurisdictions.
For Malaysian business communities and investors, the Grabato case underscores essential lessons regarding due diligence and scepticism toward investment opportunities, particularly those promising exceptional returns from overseas fund managers. The aggressive marketing campaigns, fabricated performance records, and misappropriation of funds that characterised NRIA's operations employ tactics commonly deployed across transnational fraud schemes targeting Southeast Asian investors. Regulatory authorities throughout the region continue issuing warnings regarding similar schemes operating under various corporate structures.
Investigators and the public now face the challenge of locating Grabato, who may be residing in the Philippines or maintaining a fugitive existence elsewhere in Southeast Asia or beyond. The substantial reward, combined with modern surveillance capabilities and international law enforcement cooperation, substantially constrains his operational freedom. Anyone possessing credible information regarding his whereabouts is urged to contact their nearest FBI field office, local law enforcement, or the nearest United States embassy or consulate.
