ILOILO — The family of Rey Grabato II has broken its silence over the Iloilo businessman’s reported inclusion in a United States fraud case, stressing that he has not received any summons or official legal notice from either Philippine or American authorities while raising questions over whether his formal leadership position in the company reflected who actually controlled its operations.
Grabato, who is from Mina, Iloilo, is also recovering from a severe stroke that has left him partially paralyzed and with significant limitations in mobility, communication and cognitive functioning, according to his family.
The family issued the statement after reports circulated in the media and on social media linking Grabato to a United States Federal Bureau of Investigation case involving conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud the United States with respect to tax.
“We wish to clarify that, as of August 14, 2026, neither Mr. Grabato nor his authorized representatives have received or been served with any official notice, summons, or other legal process from Philippine authorities in relation to the matters being reported. We likewise confirm that no summons or official notice has been received from the United States government regarding the same,” the family said in a statement.
Grabato remains under continuing medical care, with his family saying its immediate priority is his treatment, rehabilitation and well-being.
“Given his present condition, we respectfully ask the public and the media to exercise sensitivity and restraint in discussing his personal and medical circumstances,” the family appealed.
It said it would be inappropriate at this time to speculate on, debate or publicly litigate the substance of allegations appearing in media and social media reports.
The family nevertheless said it would respond through the proper legal process if Grabato is formally served with any notice.
“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. 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.”
The family also stressed that the filing of charges does not amount to a conviction.
“We further emphasize that allegations, an indictment, or the filing of criminal charges do not constitute a finding of guilt. Mr. Grabato remains entitled to due process and the presumption of innocence unless and until guilt is established in accordance with law before a court of competent jurisdiction,” it said.
The family also sought to put Grabato’s role in National Realty Investment Advisors (NRIA) in context, pointing to descriptions in the public record of the US proceedings that portrayed him as a “stand-in CEO” while Thomas Nicholas Salzano allegedly exercised actual operational control over the company.
According to the family, a Barron’s report said federal prosecutors characterized Grabato’s leadership role at NRIA as “titular.” It stressed, however, that the report did not identify which individual prosecutor specifically used the term.
The family said US charging documents similarly described Grabato as a “stand-in CEO” whom Salzano allegedly used while concealing his true managerial role in NRIA. The same records stated that Salzano ran the company’s day-to-day operations and that Grabato took directions from him.
“While Mr. Grabato formally carried the title of President and Chief Executive Officer, the public record itself describes his leadership role as titular, identifies him as a “stand-in CEO,” and identifies Mr. Salzano as the individual who actually exercised operational control over NRIA. Subsequent developments further reinforce the importance of that distinction,” the family said.
It added that US Department of Justice public records showed Salzano later pleaded guilty to securities fraud, conspiracy to commit wire fraud and conspiracy to defraud the United States.
The family said the US government stated in connection with Salzano’s guilty plea and sentencing that he admitted secretly running NRIA behind the scenes, making numerous misrepresentations to investors and misappropriating investor funds. He was subsequently sentenced to 12 years in prison.
According to the family, Grabato was deeply loyal to Salzano, trusted his judgment and was accustomed to acting on his directions.
It expressed concern that Grabato’s loyalty, trust and deference may have been exploited, leaving him with the title and public exposure associated with leadership while another individual allegedly exercised actual control behind the scenes.
The family said these circumstances raise questions over whether Grabato’s “titular position, loyalty, and deference” left him publicly exposed to responsibility for conduct that may have been directed or controlled by another person.
It stopped short, however, of describing Grabato as a “fall guy” or claiming that any court had reached such a conclusion.
The family appealed to the public to refrain from drawing conclusions about Grabato’s knowledge, intent or participation until he is given the opportunity to answer the allegations through the appropriate legal process./PN