Rey E. Grabato II, whose father serves as mayor of Mina in Iloilo and whose mother previously held the same municipal position, has become the latest addition to the FBI's roster of high-profile fraud fugitives. The federal law enforcement agency is seeking the former president and controlling shareholder of National Realty Investment Advisors LLC in connection with securities violations, wire fraud, and tax obstruction charges that authorities say collectively harmed thousands of victims across multiple American states.
The scale of the alleged deception is staggering. Prosecutors contend that between February 2018 and January 2022, Grabato and his alleged co-conspirator Thomas Nicholas Salzano orchestrated a Ponzi scheme targeting roughly 2,000 investors, with losses totalling more than US$650 million. Hundreds of these victims were concentrated in New Jersey, though the fraudulent operation cast a wider net through an aggressive multimedia marketing push that blanketed the country. The scheme leveraged conventional advertising channels—including television, radio, and billboards—alongside thousands of mass emails and in-person investor presentations to cultivate an appearance of legitimacy.
At the heart of the fraud lay a deceptively simple misrepresentation. Potential investors were presented with claims that NRIA Partners Portfolio Fund I LLC, a real estate investment vehicle purportedly managed by the company, was financially robust and consistently generating substantial returns. In reality, prosecutors allege that the fund generated little to no profit and instead operated as a classic Ponzi structure, where payments to existing investors came directly from contributions by newly recruited participants. The scheme's survival depended on continuous growth, a pyramid structure that inevitably collapses once recruitment slows.
Beyond the investment fraud itself, Grabato stands accused of a secondary layer of criminal conduct: the misappropriation of investor capital. Federal prosecutors maintain that the defendant and his associates diverted millions of dollars that had been entrusted by investors, converting these funds to personal use rather than deploying them toward legitimate investments. This embezzlement component transformed what might have been a reckless investment gone wrong into calculated criminal theft.
The scope of Grabato's alleged wrongdoing extends further still. Authorities contend that from November 2007 through August 2022, he participated in a separate scheme designed to obstruct the Internal Revenue Service's collection efforts on approximately US$26 million in unpaid federal taxes. The extended timeline of this tax obstruction—spanning over a decade—suggests a pattern of deliberate evasion rather than isolated non-compliance, adding conspiracy and obstruction charges to the growing list of federal violations.
Grabato's background lends particular notoriety to his case. As the son of a sitting municipal mayor and having grown up in a politically connected family, his alleged crimes represent a breach of the trust accorded to individuals from prominent backgrounds. His mother, Lydia Encarnacion Grabato, previously served as mayor of Mina, establishing a family tradition of public service that stands in sharp contrast to the conduct now attributed to him. This intersection of political pedigree and large-scale fraud underscores how criminal conduct can emerge from unexpected quarters and demonstrates that proximity to public office provides no guarantee of ethical behaviour.
Federal authorities issued a warrant for Grabato's arrest in October 2022 following charges filed in the United States District Court for the District of New Jersey in Newark. At that time, court documents identified him as having ties to both Hoboken, New Jersey and the Philippines, suggesting possible international dimensions to his location or assets. While Salzano was apprehended shortly after the charges were filed, Grabato evaded capture and has remained a fugitive for over two years. The FBI is offering a reward of up to US$150,000 for information that results in his arrest and conviction, an incentive designed to encourage potential witnesses or associates to come forward.
The fugitive has reportedly operated under multiple aliases, further complicating law enforcement efforts to locate him. Records indicate he has variously used the names Rey Encarnacion Grabato II, Rey Grabato II, and Rey Li Encarnacion Grabato, suggesting either deliberate obfuscation or a pattern of identity manipulation. This multiplicity of names may facilitate attempts to evade detection or establish fraudulent credentials with new potential investors.
Grabato's appearance on the FBI's Most Wanted Fraudsters list reflects a broader American security focus on transnational fraud cases involving individuals with Asian connections. The list, launched in June 2023 to highlight high-profile fraud fugitives, now includes several other individuals with Filipino ties or operations affecting Filipino communities. Michael Lizaso Marasigan, a dual Philippine-American citizen with connections to Guam and the Philippines, was convicted in May 2025 on charges involving illegal gambling, money laundering, and wire fraud. Additionally, the couple John Michael Dimitrion and Julieanne Baldueza Dimitrion, who conducted a mortgage fraud scheme in Hawaii in the late 2000s, remain fugitives after failing to appear for sentencing in 2010.
For Malaysian and Southeast Asian observers, the Grabato case underscores the vulnerability of investor communities across the region to sophisticated cross-border fraud schemes. The scheme's reliance on digital marketing and mass communication tactics mirrors methodologies employed in various investment scams targeting affluent individuals throughout Asia-Pacific economies. The case also demonstrates how international cooperation between Philippine and American authorities, and by extension with other regional partners, remains essential to pursue fugitives who exploit geographic boundaries to evade justice.
Investigations remain active, and anyone with information regarding Grabato's whereabouts is urged to contact their local FBI office or the nearest United States embassy or consulate. Given the alleged sophistication of the scheme and the defendant's reported ties to multiple jurisdictions, authorities suspect he may have attempted to relocate to the Philippines or other countries in the region where extradition procedures could prove more complex.
