A New Jersey executive who orchestrated a massive Ponzi scheme defrauding approximately 2,000 investors of more than $650 million has become the first Garden State resident added to the FBI’s Most Wanted Fraudsters list, with federal authorities offering a $150,000 reward for information leading to his capture.

Four-Year Fraud Operation Targets American Investors

Rey E. Grabato II operated National Realty Investment Advisors as president and majority owner between February 2018 and January 2022, falsely representing the value of investment funds allegedly used to acquire equity interests in real estate companies. Federal investigators determined the operation was a classic Ponzi scheme that targeted hundreds of New Jersey residents among its 2,000 victims nationwide. An arrest warrant was issued in October 2022 on charges including conspiracy to commit securities fraud, wire fraud, and conspiracy to defraud the United States regarding taxes.

FBI Newark Supervisory Special Agent Tony Logan emphasized Grabato’s central role in the scheme. Logan explained that Grabato was not merely a minor participant receiving kickbacks but rather one of the main architects as the company’s CEO. The investigation revealed Grabato also participated in a separate scheme to obstruct the IRS from collecting approximately $26 million in outstanding tax liabilities owed by the operation.

Co-Conspirators Face Justice While Leader Remains Free

Two other leaders of the fraudulent investment firm faced federal indictment in October 2022. Thomas Nicholas Sazano, 64, and Arthur S. Scuttaro, 62, were charged in connection with both the $650 million Ponzi scheme and the conspiracy to evade $26 million in tax liabilities. Scuttaro, who served as the company’s head of sales, pleaded guilty to conspiracy to commit securities fraud. Meanwhile, Grabato remains a fugitive nearly four years after the warrant was issued.

Federal authorities believe the stolen funds have been completely spent, leaving defrauded investors without hope of restitution. Logan stated plainly that from the FBI’s standpoint, no money remains to be recovered. The massive financial losses represent life savings and retirement funds for many of the 2,000 victims who trusted the fraudulent investment operation.

International Manhunt Focuses On Philippines

Investigators believe Grabato, a Hoboken resident with Filipino heritage, likely fled to the Philippines using his Filipino passport. Flight records support this theory, though Logan acknowledged uncertainty about the fugitive’s exact whereabouts. The FBI selected Grabato for inclusion on the Most Wanted Fraudsters list based on the substantial amount stolen, his leadership role, the large number of victims, and his criminal history. The list, launched in June, has already resulted in three fugitive apprehensions.

Authorities describe Grabato as a Filipino man, 5 feet 5 inches tall, weighing 160 pounds, with black hair. Logan expressed the FBI’s commitment to pursuing justice for the thousands of defrauded investors, stating agents will continue doing whatever necessary to locate the fugitive and ensure he stands trial for his alleged crimes.