The Federal Bureau of Investigation has added a man with ties to Hoboken and the Philippines to its Most Wanted Fraudsters list, accusing him of orchestrating a multi-year investment fraud that targeted roughly 2,000 investors, including hundreds in New Jersey.
Allegations and reward
The FBI identified the suspect as Rey E. Grabato II, also known by several aliases including Rey Encarnacion II and Rey Li Encarnacion Grabato. The bureau says Grabato served as president and majority owner of National Realty Investment Advisors, LLC (NRIA), a company purportedly focused on buying equity interests in entities that invested in real estate assets.
According to the FBI, between February 2018 and January 2022, Grabato and others misrepresented the value of NRIA’s investment fund and its holdings. The agency says the alleged scheme defrauded approximately 2,000 investors of roughly $650 million, and that hundreds of those investors were in New Jersey.
"wanted for his alleged participation in a scheme that defrauded approximately 2,000 investors, including hundreds of investors in New Jersey, of over $650 million between February of 2018 and January of 2022."
The FBI is offering a reward of up to $150,000 for information leading to Grabato’s arrest and conviction, according to the agency’s release.
Separate alleged tax obstruction
In a separate allegation, the FBI says Grabato participated in a scheme to obstruct, impede and impair the Internal Revenue Service’s efforts to collect roughly $26 million in outstanding tax liabilities owed to the U.S. government. Those alleged acts of obstruction are said to have occurred between November 2007 and August 2022.
What the FBI release includes
The bureau’s public material includes images and identifying information tied to Grabato and lists his multiple aliases. State and local law enforcement agencies in New Jersey are included among the partners identified in the release.
- Alleged victims: ~2,000 investors, including hundreds in New Jersey
- Alleged loss: ~$650 million
- Reward: up to $150,000
- Related alleged tax liability: ~$26 million
Local impact and what to do
Financial fraud on this scale can have broad consequences for local investors, retirement plans and community trust in financial advisers. Victims often face prolonged recovery processes, including civil and criminal proceedings and complex asset-tracing efforts.
The FBI urges anyone with information about Grabato’s whereabouts or the allegations to contact their local FBI field office or submit tips through the bureau’s online tip portal. Law enforcement also recommends that anyone who believes they were victimized by NRIA or related investment products preserve documentation and consult legal counsel or state consumer protection agencies to explore recovery options.
Timeline summary
| Period | Alleged activity |
|---|---|
| Nov 2007 – Aug 2022 | Alleged obstruction of IRS collection of ~$26M |
| Feb 2018 – Jan 2022 | Alleged NRIA investment fraud defrauding ~2,000 investors of ~$650M |
How residents can report tips
- Contact the FBI field office: use the bureau’s website to find the nearest office.
- Submit an online tip at FBI.gov/tips or call local law enforcement.
- Preserve records: keep investment documents, communications and bank statements intact.
The FBI release did not specify Grabato’s current location. Authorities typically caution against approaching suspects directly and recommend reporting any tips to law enforcement. State and federal agencies continue to coordinate on public notifications and investigative steps as the case develops.
We will update this report as authorities release additional information and as law enforcement makes any public arrests, charges or court filings available.
Rohan Iyer, State Correspondent
