Rey E. Grabato II, a New Jersey resident accused of orchestrating a Ponzi scheme that defrauded approximately 2,000 investors of more than $650 million, has been named to the FBI’s Most Wanted Fraudsters list. He is the first individual from New Jersey to appear on the list.
The FBI alleges that between February 2018 and January 2022, Grabato participated in a scheme that defrauded investors, many of whom were in New Jersey. Federal authorities issued an arrest warrant for Grabato in October 2022, and he has been a fugitive since.
Grabato faces charges including 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 obligations. He reportedly served as the president and majority owner of National Realty Investment Advisors, LLC, a company that allegedly misrepresented the value of its investment fund. This fund was purportedly used to acquire equity interests in companies investing in real estate assets.
In addition to the Ponzi scheme, Grabato is accused of participating in a separate effort to impede the IRS from collecting approximately $26 million in unpaid taxes owed to the U.S. government. In October 2022, two other alleged co-conspirators, Thomas Nicholas Sazano, 64, and Arthur S. Scuttaro, 62, were indicted in connection with the scheme and tax evasion charges.
Arthur Scuttaro, the former head of sales for the company, has pleaded guilty to conspiracy to commit securities fraud.
The FBI’s decision to place Grabato on the Most Wanted Fraudsters list was attributed to the significant amount of money he allegedly stole, his prior criminal history, and the large number of victims. FBI Newark Supervisory Special Agent Tony Logan stated that Grabato was a principal figure in the scheme, not a minor participant.
Logan indicated that investors who lost money have not received restitution, suggesting the funds have likely been spent. "There is, from our standpoint, no money left," he told the outlet.
Authorities believe Grabato, a resident of Hoboken, may have fled to Southeast Asia, possibly the Philippines, as he holds a Filipino passport and flight records suggest this as a potential destination. "Anybody’s guess as good as ours," Logan said regarding Grabato’s current location.
The FBI launched its Most Wanted Fraudsters list in June to publicly identify individuals charged with defrauding Americans. Three fugitives from this list have already been apprehended. The FBI is offering a reward of up to $150,000 for information leading to Grabato’s arrest and conviction.
Grabato is described as a Filipino male, approximately 5 feet 5 inches tall, weighing 160 pounds, with black hair. Anyone with information regarding his whereabouts is encouraged to contact the FBI via its tips website, by calling 1-800-CALL-FBI, or by contacting FBI Newark at 973-792-3000. The FBI hopes apprehending Grabato will bring justice to the victims of the alleged fraud.