NJ Man Accused of $650M Ponzi Scheme Added to FBI's Most Wanted Fraudsters List
Rey E. Grabato II, accused of orchestrating a $650 million Ponzi scheme targeting 2,000 investors, is the first New Jersey resident named to the FBI's Most Wanted Fraudsters list. The FBI is offering a reward for information leading to his arrest.
Key takeaways
- Rey E. Grabato II is the first New Jersey resident named to the FBI's Most Wanted Fraudsters list for allegedly defrauding 2,000 investors out of $650 million.
- The alleged Ponzi scheme operated between February 2018 and January 2022 and involved misrepresenting an investment fund associated with National Realty Investment Advisors, LLC.
- Grabato faces charges including conspiracy to commit securities and wire fraud, and defrauding the US government regarding tax evasion.
- The FBI is offering up to $150,000 for information leading to Grabato's arrest, and officials believe he may have fled to Southeast Asia, possibly the Philippines.
- Co-conspirators Thomas Nicholas Sazano and Arthur S. Scuttaro were indicted in October 2022, with Scuttaro pleading guilty to conspiracy to commit securities fraud.
Rey E. Grabato II, accused of defrauding approximately 2,000 investors out of over $650 million, has been designated as one of the FBI’s Most Wanted Fraudsters. He is the first individual from New Jersey to be included on this list.
Grabato is alleged to have operated a Ponzi scheme between February 2018 and January 2022. The FBI states that hundreds of the investors were located in New Jersey. The scheme involved misrepresenting the value of an investment fund managed by National Realty Investment Advisors, LLC, a company of which Grabato was president and majority owner. The fund was reportedly used to acquire equity interests in companies involved with real estate assets.
Federal authorities issued an arrest warrant for Grabato in October 2022, and he has been a fugitive since. He faces charges including conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud the United States regarding tax evasion. The FBI has placed a reward of up to $150,000 for information leading to his capture and conviction.
Authorities also believe Grabato was involved in a separate effort to obstruct the IRS in collecting approximately $26 million in outstanding tax liabilities owed by the government. In October 2022, two other alleged co-conspirators, Thomas Nicholas Sazano and Arthur S. Scuttaro, were indicted for their roles in the $650 million scheme and tax evasion charges.
One co-conspirator, Arthur S. Scuttaro, formerly the head of sales at the firm, has pleaded guilty to conspiracy to commit securities fraud. Officials indicated that investors who lost funds in the scheme are unlikely to receive restitution, as the money is believed to have been spent.
The FBI launched its Most Wanted Fraudsters list in June to publicly identify individuals accused of defrauding Americans. Grabato is described as a Filipino man, 5 feet 5 inches tall, weighing 160 pounds, with black hair. Officials suspect Grabato may have fled to Southeast Asia, possibly the Philippines, as he holds a Filipino passport and flight records suggest travel to that region.
FBI Newark Supervisory Special Agent Tony Logan stated that Grabato was a principal figure in the scheme, not a minor participant. Logan expressed the FBI's commitment to bringing Grabato to justice to account for his alleged actions. The list has already seen three fugitives apprehended.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
Related stories
Kerala CM Alleges GST Fraud, Financial Lapses in Failed Messi Event Plan
AI Image Used by UP Teen to Fake Kidnapping for Gaming Debt
Veterinary Doctor Dies by Suicide in Gorakhpur After Alleged ₹1.40 Crore Fraud