UTICA, N.Y. — A New Jersey woman and her Colombian husband were convicted by a federal jury of orchestrating a nationwide scheme to steal more than $1.6 million in federal funds intended for elderly, disabled, and homeless Americans, the Department of Justice announced.
Jael Watts, 45, of Alloway, New Jersey, and Luis Pino-Copete, 42, of Bogota, Colombia, operated a shell company called Pearl Transit Corporation that purported to provide rides to the elderly and disabled and conduct street outreach for homeless individuals across the United States. In reality, the company employed no drivers and performed no services, according to trial evidence.
Over a period spanning July 2019 through October 2025, Watts devised and executed a scheme to defraud state and local administrators of federal pass-through funds, including the Federal Transit Administration’s Section 5310 Program and HUD’s Community Development Block Grant and Emergency Solutions Grant programs. The defendants submitted false employment and customer information using stolen identities of real people, including deceased individuals.
Some individuals listed as Pearl Transit recipients were deceased at the times they supposedly received rides. Others listed as drivers did not have driver’s licenses and had never driven a car — one held only a learner’s permit when the defendants claimed she drove for the company.
The defendants sought reimbursement of over $13 million in federal funds through false claims. They fraudulently obtained more than $1.6 million, including:
- $529,500 in CDBG funds from Gwinnett County, Georgia
- $429,885 in Section 5310 funds from the Los Angeles County Metropolitan Transportation Authority
- $283,000 in ESG funds from Kern County, California
- $379,149 in Section 5310 funds from the City of Raleigh, North Carolina
“These convictions send a clear message that those who exploit federal programs for personal gain will be held fully accountable,” said Assistant Attorney General Colin M. McDonald of the Department of Justice’s National Fraud Enforcement Division. “The defendants fabricated payrolls and client lists, even using the identities of deceased individuals, to siphon millions meant for the most vulnerable Americans.”
The investigation began in late 2024 when Watts submitted claims for nearly $750,000 through the Section 5310 Program to the New York State Department of Transportation. The Office of the New York State Comptroller found the invoices suspicious and initiated an audit. In response, Watts and Pino-Copete generated numerous false documents using stolen identities in an attempt to convince New York State that Pearl Transit had performed the claimed services.
Searches of the defendants’ cell phones uncovered communications about creating fake documentation. Watts declared, “one has to be committed to this type of work . . . and I am committed,” and boasted, “they are not smart . . . we are much smarter.”
An exhaustive review of the defendants’ bank accounts showed the fraud proceeds were spent entirely on a lavish lifestyle, including over $100,000 on Porsche rentals, over $100,000 at Loro Piana in Manhattan, and a nearly year-long travel spree in 2024 that included Colombia, Aruba, and four months in Europe.
In another aspect of the scheme, the defendants sought CDBG reimbursements by claiming they provided free dental prostheses to homeless individuals. In reality, they printed dentures at their home with an unsanitary 3-D printer and charged homeless individuals fees for scanning their mouths and fitting the dentures. Pino-Copete was captured on video showing off cash obtained from a homeless dental client at a Maryland flea market to Watts while she was incarcerated.
“These two defendants traded their Tuscan spa robes for his and hers orange jumpsuits,” said First Assistant U.S. Attorney John A. Sarcone for the Northern District of New York.
Watts married Pino-Copete in Colombia in 2023, and he joined the fraud scheme in January 2024. He entered the United States in January 2025 on a visa issued in December 2024. His role in the crimes progressed after Watts was initially charged with wire fraud in July 2025. The defendants were caught conspiring to submit false documents to obtain $50,000 in federal funds from the City of San Bernardino, California, while Watts was detained at the Albany County Correctional Facility in September 2025.
Following a multi-week jury trial in Utica, the jury found both defendants guilty of all crimes charged in a third superseding indictment. Watts was convicted of one count of false statement, one count of aggravated identity theft, and five counts of wire fraud. Both defendants were convicted of one count of wire fraud conspiracy, one count of false document, and one count of aggravated identity theft.
“This is not a victimless crime,” said Special Agent in Charge Shawn A. Rice of the HUD Office of Inspector General, Northeast Region. “Every dollar they stole could have been used to help vulnerable Americans.”
Sentencing is scheduled for January 21, 2027, before U.S. District Judge Anthony J. Brindisi. The defendants face a mandatory minimum of two years and a maximum of twenty years in prison, fines of up to $250,000, and supervised release terms of up to three years. They also face a restitution order of at least $1.9 million. Pino-Copete, who is not a U.S. citizen, faces removal and deportation following any term of imprisonment.
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