Son of Iloilo town mayor among FBI's Most Wanted for fraud

A son of a mayor in Iloilo Province has landed on the United States Federal Bureau of Investigation’s (FBI) Most Wanted list for allegedly conspiring to defraud around 2,000 investors of more than $650,000 (approximately P39.9 million) from 2018 to 2022.

Rey Grabato II was identified as the son and namesake of Mina Mayor Rey Grabato and Lydia Encarnacion Grabato, who also served as mayor of the same town.

Grabato II is among the FBI’s Most Wanted Fraudsters List for conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud the US with respect to tax.

As president and majority owner of real estate investment company National Realty Investment Advisors LLC (NRIA), Grabato II and others allegedly misrepresented the value of the company’s investment fund, which was used to acquire stakes in companies investing in real estate.

The FBI said that from November 2007 to August 2022, Grabato also allegedly took part in a separate scheme to obstruct the US Internal Revenue Service (IRS) from collecting about $26 million in unpaid taxes owed to the US government.

A federal arrest warrant was issued against Grabato II on October 12, 2022, after he was charged with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud the United States in connection with tax matters.

The FBI is offering a reward of up to $150,000 (around P9.2 million) for information leading to the arrest of the accused.

Those who may have any information may contact their local FBI office or the nearest American Embassy or Consulate.

In a statement on Friday, Grabato II’s family said that as of Aug. 14, no official notice or legal process has been served on him or his representatives, but they will respond through the appropriate channels should and when formal proceedings require it.

“Should any official notice or legal process be duly served, the matter will be addressed through the proper legal channels, in accordance with applicable law, and with the assistance of counsel,” said brother Christopher Grabato.

According to Christopher, Grabato II is partially paralyzed and currently recovering from a severe stroke and asked the public and the media to “exercise sensitivity and restraint in discussing his personal and medical circumstances.”

“Mr. Grabato’s medical condition and ability to meaningfully participate in any proceedings will likewise be appropriately documented and addressed through the proper legal process,” Christopher said.

In a separate statement on Saturday, Grabato II’s family sought clarification on his role at NRIA and expressed concern that his loyalty to Thomas Nicholas Salzano may have been exploited.

Citing US government records, Grabato II’s family said Salzano is NRIA’s “shadow chief executive officer” and “de facto head” of the company.

Salzano was later sentenced to 12 years of imprisonment after he pleaded guilty to securities fraud, conspiracy to commit wire fraud, and conspiracy to defraud the US.

“The family remains committed to addressing any legal process through the proper channels and, when necessary, presenting the relevant facts and evidence before the appropriate authorities rather than attempting to litigate the matter through social media,” the family said.

“We continue to appeal for fairness, accuracy, restraint, and respect for due process as this matter receives renewed public attention,” he added. —RF, GMA News