A real estate fraudster who swindled investors out of more than $650 million and then evaded a federal arrest warrant has been added to the FBI’s Most Wanted List.
Rey E. Grabato II ran National Realty Investment Advisors (NRIA) LLC, a company that defrauded approximately 2,000 investors in a Ponzi-style investment scheme. The FBI stated that Grabato and his associates “allegedly misrepresented the value of NRIA’s investment fund reportedly used to acquire equity interests in companies that invested in real estate assets” from 2018 through 2022.
The FBI also noted that Grabato also prevented the Internal Revenue Service from collecting approximately $26 million in taxes between 2007 and 2022.
Grabato was charged in October 2022 with 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. His last known address was in Hoboken, New Jersey, and the FBI said he may have returned to his homeland in the Philippines.
“If you have any information concerning this person, please contact your local FBI office or the nearest American Embassy or Consulate,” said the FBI, which is offering a $150,000 reward for his capture.
The Filipino news site PhilStar.com reported the family of 47-year-old Grabato said he is currently recovering from a debilitating stroke.
“We also wish to inform the public that Mr. Grabato is presently recovering from a severe stroke,” said his younger brother, Christopher Grabato, in a statement. “As a consequence of his medical condition, he is currently partially paralyzed and continues to experience significant limitations in his mobility, communication, and cognitive functioning.”
Christopher Grabato did not confirm that his brother was in the Philippines, where his father is the mayor of the town of Iloilo, though he said he was receiving ongoing medical care. He added there has been no direct contact from either the US or Philippines governments regarding the charges against him.
“In light of the fact that no official notice or legal process has been served upon Mr. Grabato or his representatives, we consider it inappropriate at this time to speculate on, debate, or publicly litigate the substance of the allegations appearing in media and social media reports,” Christopher Grabato added. “We further emphasize that allegations, an indictment, or the filing of criminal charges do not constitute a finding of guilt. Mr. Grabato remains entitled to due process and the presumption of innocence unless and until guilt is established in accordance with law before a court of competent jurisdiction.”
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