Hoboken-Linked Businessman Joins FBI Most Wanted Fraudsters

A businessman with ties to our region has landed on the FBI's Most Wanted Fraudsters list, accused of running massive investment fraud schemes that victimized hundreds of New Jersey residents.

The Federal Bureau of Investigation confirmed that Rey E. Grabato, II, who has connections to Hoboken and the Philippines, is now among the agency's most sought-after fraud suspects. Authorities are offering up to $150,000 for information leading to his arrest and conviction.

According to the FBI, Grabato allegedly defrauded approximately 2,000 investors—including hundreds right here in New Jersey—of more than $650 million between February 2018 and January 2022. The scheme centered on National Realty Investment Advisors, LLC (NRIA), a real estate investment firm where Grabato served as both the controlling owner and chief executive.

Federal investigators allege that Grabato and his associates misled investors about the true value of NRIA's investment fund, which was marketed as a vehicle for purchasing ownership stakes in real estate-focused companies. The misrepresentations allegedly allowed the scheme to continue for nearly four years before collapsing.

The charges against Grabato extend beyond the investment fraud. Between November 2007 and August 2022, he also allegedly participated in a separate conspiracy designed to prevent the Internal Revenue Service from collecting approximately $26 million in unpaid federal taxes. The FBI states that this scheme was intended to obstruct and impair the government's tax collection operations.

Grabato is known to use several aliases, including Rey Encarnacion, II; Rey Grabato, II; and Rey Li Encarnacion Grabato, according to federal authorities.

The case highlights the devastating impact financial fraud can have on local communities. With hundreds of New Jersey investors among the alleged victims, the ripple effects of the scheme have touched families and retirement accounts across our state.

Anyone with information about Grabato's whereabouts is urged to contact the FBI immediately. The substantial reward reflects the seriousness of the allegations and the priority federal authorities have placed on bringing him to justice.