FBI Most Wanted fraud suspect from Philippines reportedly seriously ill

A Filipino national wanted by the FBI in connection with an alleged $650 million investment fraud scheme is recovering from a severe stroke that has left him partially paralyzed and with significant physical and cognitive limitations, according to his family.

Rey E. Grabato II, who was recently added to the FBI’s Most Wanted Fraudsters list, remains under continuing medical care, his younger brother Christopher Grabato said in a family statement.

The family said Grabato’s medical condition has significantly affected his mobility, ability to communicate and cognitive functioning.

The disclosure came just days after the FBI announced on Aug. 13 that Grabato had been placed on its Most Wanted Fraudsters list and offered a reward of up to $150,000 for information leading to his arrest and conviction.

Grabato, the son and namesake of Mina, Iloilo Mayor Rey Grabato, reportedly returned to Iloilo in May 2022 after undergoing brain surgery in the United States following an accident.

His family has said he later suffered the severe stroke from which he is now recovering.

Despite his medical condition, Grabato remains wanted by U.S. authorities.

A federal arrest warrant was issued for him on Oct. 12, 2022, by the U.S. District Court in Newark, New Jersey. He faces charges of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud and conspiracy to defraud the United States with respect to tax.

Federal authorities allege that Grabato, while serving as president and majority owner of National Realty Investment Advisors LLC, participated with others in a scheme that defrauded approximately 2,000 investors of more than $650 million between February 2018 and January 2022.

Hundreds of the alleged victims were in New Jersey, according to the FBI.

Authorities allege that Grabato and others misrepresented the value of NRIA’s investment fund, which was purportedly used to acquire interests in companies investing in real estate assets.

Grabato is also accused of participating in a separate scheme between November 2007 and August 2022 to obstruct IRS efforts to collect approximately $26 million in outstanding federal tax liabilities.

His family has stressed that the federal charges remain allegations and that Grabato has not been convicted in connection with the case.

The family also said that, as of Aug. 14, neither Grabato nor his legal representatives had been formally served with official legal documents by Philippine or U.S. authorities. They said any formal proceedings would be addressed through legal counsel.

The family has additionally argued that Grabato did not exercise full operational control over NRIA, pointing to U.S. government allegations identifying co-defendant Thomas Nicholas Salzano as the company’s behind-the-scenes operational leader. That argument represents the family’s position and does not alter the federal charges pending against Grabato.

The FBI continues to list Grabato among its wanted fraud suspects and says he has ties to the Philippines.