FBI Places Iloilo Mayor's Son on Most Wanted Fraudsters List Over $650M Investment Scheme

FBI Places Iloilo Mayor’s Son on Most Wanted Fraudsters List Over $650M Investment Scheme

The Federal Bureau of Investigation (FBI) has officially placed Rey E. Grabato II, a businessman and the son of the incumbent mayor of Mina, Iloilo, on its Most Wanted Fraudsters list over his alleged involvement in a massive USD 650 million investment fraud scheme that victimized thousands of investors, including many Filipino Americans.

The FBI announced the listing through its official Facebook page on Thursday night, Aug. 14, 2026, marking a significant escalation in a case that has drawn attention on both sides of the Pacific. The agency is now offering a reward of up to USD 150,000 for information leading to Grabato’s arrest and conviction, and has stated that he has ties to the Philippines and may currently be living in the country.

Who is Rey Grabato II and What Are the Allegations?

Rey E. Grabato II is the son and namesake of incumbent Mina Mayor Rey P. Grabato and former Mayor Lydia Grabato. The Iloilo provincial government’s municipal directory identifies Rey P. Grabato as the town’s mayor, placing the younger Grabato squarely within a prominent political family in the province. However, his alleged crimes took place far from the quiet streets of Mina, unfolding instead in the high-stakes world of New Jersey real estate investment.

According to the FBI, Grabato served as president and majority owner of National Realty Investment Advisors LLC, a real estate investment firm based in Secaucus, New Jersey. An 18-count indictment, unsealed on Oct. 12, 2022, by the US District Court for the District of New Jersey in Newark, alleges that Grabato and his co-defendant, Thomas Nicholas Salzano, defrauded approximately 2,000 investors — including hundreds in New Jersey — from February 2018 to January 2022.

The charges against Grabato are serious and numerous: conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud the United States with respect to taxes. The US Department of Justice alleged that the defendants misrepresented the value of the company’s investment fund, which was supposedly used to acquire ownership stakes in companies investing in real estate. In reality, prosecutors say, the fund was operated as a Ponzi scheme that generated little or no profit, with early investors being paid using money from newer investors.

The Human Toll: Filipino American Investors in New Jersey

For the Filipino community, this case hits particularly close to home. New Jersey is home to a significant Filipino American population, and the FBI has confirmed that hundreds of the victims in this case reside in the Garden State. Many of these investors were likely hardworking professionals — nurses, healthcare workers, and other overseas Filipino workers (OFWs) and their families — who trusted their savings to what appeared to be a legitimate real estate investment firm.

The scheme’s collapse has left many families in financial ruin, with retirement funds and children’s education savings wiped out. The emotional and psychological toll on these victims cannot be overstated. For many Filipino families, the concept of “bayanihan” — the spirit of communal unity and cooperation — is deeply ingrained, and the betrayal of that trust by someone with roots in a Philippine political family adds an extra layer of pain.

The case also resonates in Iloilo, where the Grabato name carries weight. Mina is a small, fifth-class municipality in the province’s first district, and the idea that a son of the town’s mayor is now on an international most-wanted list has sent shockwaves through the local community. Neighbors and kapitbahay in Mina are left grappling with how a local boy who grew up in their midst could be accused of such a large-scale international crime.

The Ponzi Scheme and Tax Evasion Allegations

The FBI’s investigation revealed a pattern of alleged deception that went beyond simple investment fraud. According to the US Department of Justice, Grabato and Salzano promoted the National Realty Investment Advisors fund through false statements and omissions, painting a picture of a thriving real estate portfolio when, in reality, the fund was barely generating any legitimate profit.

The scheme was allegedly operated as a classic Ponzi arrangement, where returns to earlier investors were paid from the capital contributed by later investors. This unsustainable model inevitably collapses, and when it did, thousands of investors were left holding worthless claims.

In addition to the securities and wire fraud charges, Grabato and Salzano were also accused of conspiring to obstruct the Internal Revenue Service’s (IRS) collection of approximately USD 26 million in outstanding taxes owed by Salzano. This alleged obstruction spanned from November 2007 to August 2022, a period of nearly 15 years. The tax evasion charges add another layer of criminality to the case, suggesting a pattern of disregard for financial laws and regulations.

The US Securities and Exchange Commission (SEC) also filed a separate civil complaint in 2022 against National Realty Investment Advisors and several of its executives over the alleged scheme, further underscoring the severity of the accusations.

Grabato’s Return to Mina and the FBI’s Hunt

According to his family, Grabato returned to Mina in May 2022 to recover after undergoing brain surgery in the United States following an accident. This timeline is notable, as the federal arrest warrant for Grabato was issued on Oct. 12, 2022 — several months after his return to the Philippines. The family has maintained that his return was for medical reasons, but the FBI’s current listing suggests they believe he may still be in the country.

The FBI launched the Most Wanted Fraudsters list in June 2026 as a tool to seek the public’s help in locating individuals charged with major financial crimes. Grabato’s inclusion on this list is a clear signal that US authorities consider him a significant fugitive and are actively seeking his apprehension.

The FBI is asking anyone with information about Grabato’s whereabouts to contact the nearest FBI office, US embassy or consulate, or to submit a tip through its website. The reward of up to USD 150,000 for information leading to his arrest and conviction is a substantial sum that may encourage those who know his location to come forward.

What This Means for Philippine-US Relations and Local Politics

The case of Rey Grabato II highlights the complex intersection of Philippine and US law enforcement. While the Philippines does not have an extradition treaty with the United States, the two countries have a long history of cooperation on criminal matters through mutual legal assistance treaties and other arrangements. The FBI’s statement that Grabato may be living in the Philippines suggests that US authorities are prepared to work with Philippine law enforcement agencies, including the Philippine National Police (PNP) and the National Bureau of Investigation (NBI), to locate and apprehend him.

For the people of Mina, the situation is deeply uncomfortable. Mayor Rey P. Grabato has not publicly commented on his son’s situation, and the family has remained largely silent since the FBI’s announcement. The political implications are significant, as the Grabato family has been a fixture in Mina’s local government for years. The case serves as a reminder that the actions of individuals can have far-reaching consequences for their families and communities, regardless of their social or political standing.

The case also raises broader questions about financial fraud and its impact on ordinary Filipinos. With millions of OFWs working abroad and sending remittances home, the threat of investment scams is a constant concern. The story of Grabato and the National Realty Investment Advisors scheme serves as a cautionary tale about the importance of due diligence and the dangers of trusting investment opportunities that promise unusually high returns.

Presumption of Innocence and the Road Ahead

It is crucial to note that the charges against Rey Grabato II are allegations, and he is presumed innocent unless proven guilty in court. The US legal system provides for a fair trial, and Grabato would have the opportunity to defend himself against these charges if he is apprehended and brought before a US court.

However, the FBI’s decision to place him on its Most Wanted Fraudsters list is a strong indication of the seriousness with which US authorities view this case. The listing is not a conviction, but it does signal that the FBI believes there is sufficient evidence to warrant his arrest and prosecution.

For the victims of the alleged scheme, the FBI’s action brings a measure of hope that justice may eventually be served. For the Filipino community, both in the Philippines and abroad, the case is a stark reminder of the vulnerabilities that come with financial investment and the importance of vigilance.

As the FBI continues its hunt for Grabato, the people of Mina, Iloilo, and the broader Filipino community will be watching closely. The outcome of this case will have implications not only for the Grabato family but also for the perception of financial fraud and accountability in the Filipino diaspora. The reward money and the international attention on this case may ultimately lead to Grabato’s capture, but for the thousands of investors who lost their savings, the road to recovery remains long and uncertain.

This article was produced with AI-assisted research and editorial support. Sources: Philstar.com, Daily Guardian, OneNews.ph, FBI.