Rey E. Grabato II, whose father Rey P. Grabato serves as mayor of the municipality of Mina in Iloilo, has been placed on the FBI's Most Wanted Fraudsters list over allegations of orchestrating an investment scheme that defrauded roughly 2,000 investors of more than US$650 million. The case represents a significant international fraud investigation spanning from the Philippines to the United States, with the FBI offering a reward of up to US$150,000 for information leading to his capture and subsequent conviction.
Grabato II, a former president and majority owner of National Realty Investment Advisors LLC (NRIA), operated what federal prosecutors have characterised as an elaborate Ponzi scheme targeting vulnerable investors across multiple US states, including a substantial number in New Jersey. The criminal enterprise allegedly operated between February 2018 and January 2022, during which time perpetrators used multiple marketing channels including widespread email campaigns, television and radio advertisements, billboards, and investor seminars to attract victims. The aggressive nature of this promotional strategy enabled the conspiracy to reach an exceptionally broad audience across the continental United States.
The fraudulent operation centred on the NRIA Partners Portfolio Fund I LLC, ostensibly a legitimate real estate investment vehicle. Prosecutors allege that Grabato II and his co-conspirator Thomas Nicholas Salzano deliberately misrepresented the fund's financial condition and performance to prospective investors, claiming the enterprise was financially robust and consistently generated substantial profits. In reality, the scheme generated minimal returns and instead functioned as a classic Ponzi structure, whereby incoming investor capital was utilised to satisfy payment obligations to earlier participants rather than through genuine investment returns.
Beyond the primary investment fraud, investigators uncovered a secondary scheme allegedly involving the misappropriation of millions of dollars in investor funds. This dimension of the conspiracy revealed that money contributed by victims was diverted for purposes entirely unrelated to the purported real estate investment strategy. The systematic nature of these diversions suggests a deliberate pattern rather than isolated mismanagement, indicating a comprehensive fraudulent enterprise designed to enrich the perpetrators at the expense of ordinary savers and investors.
Grabato II and his associates face additional serious accusations related to obstruction of tax collection efforts. Federal authorities allege that from November 2007 through August 2022, the conspirators engaged in activities designed to prevent the Internal Revenue Service from collecting approximately US$26 million in outstanding tax obligations owed to the US government. This extended timeline, which predates the primary investment fraud by over a decade, indicates a longstanding pattern of financial misconduct and evasion of lawful tax collection processes.
A federal arrest warrant was issued on 12 October 2022, after Grabato II was formally charged in the US District Court for the District of New Jersey in Newark. At the time charges were filed, he was identified as residing in Hoboken, New Jersey, whilst maintaining connections to the Philippines. His co-conspirator Salzano was apprehended in October 2022, but Grabato II evaded capture and remains a fugitive. The suspect has allegedly 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 and complicate law enforcement tracking efforts.
The case gains particular significance given Grabato II's family background in Philippine politics. His father continues to serve as mayor of Mina, whilst his mother, Lydia Encarnacion Grabato, has previously held the same municipal office. This political connection raises questions about the intersection of international crime and governance in the Philippines, though there is no indication that family members were aware of or participated in the fraudulent schemes. The case nonetheless illustrates how individuals with established political connections can exploit trust and legitimacy to facilitate criminal enterprises across national boundaries.
Grabato II now joins a growing list of individuals with Filipino connections featured on the FBI's Most Wanted Fraudsters list, which was formally established in June 2026. Other Filipino or part-Filipino fugitives on the list include Michael Lizaso Marasigan, a dual Filipino-American citizen with ties to Guam and the Philippines, who was convicted in May 2025 of illegal gambling, money laundering, and wire fraud. Additionally, the list includes John Michael Dimitrion and Julieanne Baldueza Dimitrion, a husband-and-wife team convicted of operating a mortgage fraud scheme in Hawaii, who failed to appear for sentencing in July 2010 and remain at large.
The creation of the FBI's Most Wanted Fraudsters list in June 2026 reflects heightened international law enforcement focus on major financial crimes and the growing challenge of apprehending sophisticated fraud perpetrators who exploit international mobility. The list serves as a public awareness tool designed to leverage community assistance in locating fugitives, recognising that ordinary citizens may possess critical information about the whereabouts or activities of wanted individuals. The substantial reward amount—US$150,000 in Grabato II's case—underscores the seriousness with which authorities regard this investigation.
For Malaysian readers and regional business communities, this case carries cautionary implications regarding cross-border investment schemes and due diligence protocols. The sophistication of Grabato II's marketing campaign—utilising multiple media channels and professional investor presentations—demonstrates how fraud operators can create an aura of legitimacy that deceives even experienced investors. The scheme's scale and duration also highlight the importance of regulatory oversight and the challenges that emerge when investment operations span multiple jurisdictions with varying regulatory frameworks.
The international dimensions of this case underscore the complexity of pursuing financial crimes in an increasingly globalised economy. Grabato II's maintenance of connections across the United States and the Philippines while allegedly orchestrating fraud schemes from both locations exemplifies how perpetrators leverage geographic dispersion to evade detection. Regional governments and financial regulators across Southeast Asia have recognised this pattern and continue developing enhanced cooperation mechanisms to combat transnational financial crime.
The FBI continues to solicit information from the public regarding Grabato II's current whereabouts and activities. Individuals possessing relevant information are encouraged to contact their nearest FBI field office or the closest US embassy or consulate. As of the present moment, Grabato II remains at large, and authorities are treating his apprehension as a priority given the scale of the alleged fraud and the significance of the case within international law enforcement priorities.
