The son of a Philippine municipality mayor has become the latest prominent figure with Filipino connections to appear on the Federal Bureau of Investigation's Most Wanted Fraudsters list, accused of orchestrating one of the largest investment frauds in recent years. Rey E. Grabato II, whose father Rey P. Grabato currently serves as mayor of Mina in Iloilo province and whose mother Lydia Encarnacion Grabato formerly held the same municipal post, faces serious federal charges relating to a scheme that US authorities say defrauded approximately 2,000 investors of more than US$650 million between February 2018 and January 2022.
Federal prosecutors in the US District Court for the District of New Jersey have characterised Grabato's alleged operation as a sophisticated Ponzi scheme centred on National Realty Investment Advisors LLC, or NRIA, where he served as former president and majority owner. Working alongside co-conspirator Thomas Nicholas Salzano, Grabato allegedly orchestrated an aggressive and widespread marketing campaign that blanketed the United States with promotional material, including thousands of targeted emails, television and radio advertisements, billboards, and investor presentations designed to attract participants to the NRIA Partners Portfolio Fund I LLC, a purported real estate investment vehicle.
The marketing strategy proved effective in drawing victims from across the nation, with hundreds of defrauded investors located in New Jersey alone. According to prosecution documents, investors received carefully crafted but fundamentally false representations about NRIA's financial health and profitability. The company was presented as a sound investment opportunity capable of generating substantial returns, when in reality prosecutors contend that NRIA generated little to no legitimate profit whatsoever. Instead of functioning as advertised, the scheme allegedly relied on a classic Ponzi structure whereby funds contributed by newly recruited investors were used to make payments and provide purported returns to earlier participants, creating the illusion of a profitable enterprise while the underlying investment operation remained insolvent.
Beyond the central fraud allegations, Grabato faces additional accusations of systematically misappropriating millions of dollars that rightfully belonged to the investors whose capital he had attracted. Federal investigators have also determined that Grabato participated in a separate and distinct scheme aimed at obstructing the Internal Revenue Service's attempts to collect approximately US$26 million in outstanding tax liabilities owed to the American government. This tax-related conspiracy allegedly operated between November 2007 and August 2022, suggesting a lengthy pattern of financial misconduct spanning multiple decades.
A federal arrest warrant for Grabato was issued on October 12, 2022, following formal charges filed in Newark. At the time of the indictment, authorities identified him as residing in Hoboken, New Jersey, while maintaining connections to the Philippines. However, Grabato has eluded capture and remains a fugitive despite the outstanding warrant. His alleged co-conspirator Salzano was successfully arrested in October 2022, but Grabato's continued freedom prompted the FBI to include him on its most wanted list to increase public awareness and encourage tips leading to his apprehension. The FBI is offering a substantial reward of up to US$150,000 for information that results in Grabato's arrest and subsequent conviction.
Investigations have revealed that Grabato employed multiple aliases throughout his alleged fraudulent activities, including Rey Encarnacion Grabato II, Rey Grabato II, and Rey Li Encarnacion Grabato, potentially complicating efforts to track his movements and locate him. These name variations suggest a deliberate effort to obscure his identity and create confusion that might hinder law enforcement investigations and make it more difficult for victims to pursue legal remedies.
For Southeast Asian observers, the case underscores the persistent vulnerability of diaspora communities and overseas investors to predatory schemes, particularly those orchestrated by individuals with established credentials and family connections that lend superficial legitimacy. The involvement of a Philippine municipal official's family member highlights how local political standing and international financial operations can intersect in ways that may enable fraud by providing perpetrators with access to extensive networks and enhanced credibility within their communities.
Grabato joins a small but growing roster of individuals with Filipino heritage on the FBI's Most Wanted Fraudsters list, which the bureau launched in June 2026 to enhance public awareness of high-profile fraud fugitives. Among these are Michael Lizaso Marasigan, a dual Filipino-American citizen with connections to both Guam and the Philippines, who was convicted in May 2025 on charges encompassing illegal gambling operations, money laundering, and wire fraud. Additionally, the wanted list includes John Michael Dimitrion and his wife Julieanne Baldueza Dimitrion, who pleaded guilty in 2009 to orchestrating a substantial mortgage fraud scheme affecting Hawaii. After failing to appear for sentencing in July 2010, the couple has remained at large for over a decade.
The establishment of the dedicated Most Wanted Fraudsters list reflects a significant shift in FBI priorities, demonstrating heightened institutional focus on locating and prosecuting major financial crime fugitives who have evaded capture. By creating this specialised wanted list, American federal authorities have signalled their determination to pursue complex financial crimes with the same vigour traditionally reserved for violent offenders and terrorism suspects, indicating that investment fraud and economic crimes now rank among the bureau's top enforcement concerns.
For Malaysian and broader Southeast Asian investors, the Grabato case serves as an instructive cautionary tale about the importance of thorough due diligence when considering investment opportunities, particularly those offering unusually attractive returns or promoted through intensive marketing campaigns. The sophistication of modern fraud schemes means that even apparently legitimate corporate structures, professional presentations, and extensive advertising can mask predatory operations designed to extract capital from unsuspecting participants.
The FBI has urged anyone possessing information about Grabato's whereabouts to contact their nearest FBI field office or the closest US embassy or consulate. Given that Grabato maintains connections to the Philippines and was previously identified as residing in that country, local law enforcement in Iloilo and other Philippine jurisdictions remain alert to the possibility of his presence within the region. International cooperation between Philippine authorities, the FBI, and other law enforcement agencies will likely prove essential in ultimately locating and apprehending this fugitive.
