Rey E. Grabato II Added to FBI Most Wanted Fraudsters List Over Alleged $650 Million Scheme
Rey E. Grabato II Added to FBI Most Wanted Fraudsters List Over Alleged $650 Million Scheme
Rey E. Grabato II has been added to the FBI’s Most Wanted Fraudsters list over his alleged involvement in a $650 million real estate investment fraud scheme that affected more than 2,000 investors.
Why Rey E. Grabato II Is Wanted
Grabato is wanted on federal charges of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud and conspiracy to defraud the United States concerning taxes.
He formerly served as president of National Realty Investment Advisors, a New Jersey-based real estate investment company.
Alleged $650 Million Ponzi Scheme
Federal prosecutors allege that Grabato and other company executives operated a Ponzi-style scheme that raised approximately $650 million from investors.
Investors were allegedly promised that their money would finance real estate purchases and developments. Authorities claim portions of the funds were instead used to pay earlier investors, cover personal and luxury expenses and conceal the company’s financial condition.
The defendants were also accused of conspiring to evade approximately $26 million in tax liabilities.
FBI Seeks Information From the Public
Anyone with information about Rey E. Grabato II’s whereabouts can submit a tip through the FBI, call 1-800-CALL-FBI, or contact the FBI’s Newark field office at 973-792-3000.
The allegations remain pending, and Grabato is presumed innocent unless proven guilty in court.
