New Jersey Man Added to FBI’s Most Wanted Fraud List After $650 Million Scheme
Rey E. Grabato II, a Hoboken resident, has been placed on the FBI’s Most Wanted Fraudsters list for allegedly running a $650 million Ponzi scheme that defrauded about 2,000 investors.
The FBI has listed Rey E. Grabato II as the first New Jersey resident on its Most Wanted Fraudsters roster, accusing him of orchestrating a Ponzi operation that swindled more than $650 million from roughly 2,000 investors, many of whom were from New Jersey. As president and majority owner of National Realty Investment Advisors, LLC, Grabato allegedly overstated the value of an investment fund meant to acquire stakes in real-estate companies, while also participating in a scheme to obstruct the IRS’s collection of about $26 million in unpaid taxes.
An arrest warrant was issued in October 2022, and two alleged partners, Thomas Nicholas Sazano and Arthur S. Scuttaro, were later indicted, with Scuttaro pleading guilty to securities fraud. FBI Newark Supervisory Special Agent Tony Logan emphasized that victims have received no restitution and that the stolen assets appear to have been spent. Authorities are offering a reward of up to $150,000 for information and suspect Grabato may have fled to the Philippines, where he holds a passport. The agency continues to seek public assistance to locate and apprehend him.
Why it matters
The case highlights a massive financial fraud that left thousands of investors, many in New Jersey, without recourse and underscores ongoing challenges in tracking cross-border fugitives.
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