FBI Offers $150K as Hunt Intensifies for Filipino Fugitive in $650M Fraud Case

The FBI has intensified its search for Filipino fugitive Rey E. Grabato II, placing him on its Most Wanted Fraudsters list and offering a reward of up to $150,000 for information leading to his arrest and conviction.

Grabato, who was born in the Philippines and is identified by the FBI as a Filipino national, has been wanted since a federal arrest warrant was issued in New Jersey on October 12, 2022. The FBI says he has ties to the Philippines and may currently be living there.

The FBI announced on August 13 that Grabato had become the second person added to its new Most Wanted Fraudsters list, which was created to publicly identify fugitives accused of major schemes targeting American investors and consumers.

Accused in $650 Million Investment Scheme

Federal prosecutors accuse Grabato of participating in a massive real estate investment fraud that allegedly took more than $650 million from approximately 2,000 investors, including hundreds in New Jersey, between February 2018 and January 2022.

Grabato served as president of National Realty Investment Advisors LLC, or NRIA, and was identified by the FBI as its majority owner. Prosecutors allege that Grabato and others misrepresented the financial condition and value of the company's investment fund while soliciting money for real estate projects.

According to the Justice Department, investors were led to believe NRIA was a profitable and financially stable real estate operation generating substantial returns.

Prosecutors allege the reality was dramatically different: NRIA generated little or no profit from many of its developments and operated as a Ponzi scheme, using money from new investors to make payments to earlier investors.

Federal authorities said the nationwide marketing campaign used thousands of emails, television and radio advertisements, billboards, meetings and investor presentations to attract new money. Prosecutors allege millions of dollars in investor funds were ultimately misappropriated.

$26 Million Tax Scheme Also Alleged

Grabato is also accused of participating in a separate conspiracy between 2007 and 2022 to interfere with the Internal Revenue Service's efforts to collect approximately $26 million in outstanding federal tax liabilities.

Prosecutors allege Grabato and co-defendant Thomas Nicholas Salzano used nominees, bank accounts associated with phony entities and fraudulent company documents as part of the scheme to obstruct the IRS.

Grabato faces federal 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 taxes.

He has remained at large since the charges were announced.

FBI Says He May Be in Philippines

The FBI wanted poster lists Grabato's aliases as Rey Encarnacion Grabato II, Rey Grabato II and Rey Li Encarnacion Grabato.

The bureau describes him as 5 feet 5 inches tall, weighing approximately 160 pounds, with black hair and brown eyes. His listed date of birth is October 23, 1978, and his place of birth is the Philippines.

The FBI's most significant warning concerning his possible whereabouts is direct: Grabato has ties to the Philippines and may be living there.

Federal authorities are now offering up to $150,000 for information leading to his arrest and conviction. Anyone with information about Grabato's whereabouts may contact the FBI, a local FBI office, or the nearest U.S. Embassy or Consulate.

The allegations against Grabato remain accusations. He is presumed innocent unless and until proven guilty in court.