Jury Convicts New Jersey Woman and Colombian Partner in Federal Fraud Scheme

A federal jury has convicted Jael Watts, 45, of Alloway, New Jersey, and Luis Pino-Copete, 42, of Bogota, Colombia, for orchestrating a nationwide scheme to steal millions of dollars in federal program funds. The funds were administered by the U.S. Department of Transportation and the U.S. Department of Housing and Urban Development to benefit elderly, disabled, and homeless Americans.

As proven at trial, the defendants operated a shell company called Pearl Transit Corporation in New Jersey. The company purported to employ drivers across the United States who provided rides to the elderly and disabled and conducted street outreach for homeless individuals. In reality, the company employed no such drivers and performed no services.

How the Fraud Scheme Operated

From July 2019 through October 2025, Watts executed a scheme to defraud state and local administrators of federal pass-through funds. The defendants submitted false employment and customer information using stolen identities of real people, including individuals who were deceased and people who did not possess driver’s licenses. Over the course of the scheme, the defendants sought reimbursement of over $13 million in federal funds through false claims.

Evidence at trial showed that the defendants obtained over $1.5 million in federal funds, which they used to fund a lavish lifestyle. This spending included over $100,000 on Porsche rentals, over $100,000 at a Manhattan luxury brand store, and nearly a year of travel that included trips to Colombia, Aruba, and four months in Europe. In another aspect of the scheme, the defendants printed dentures at home with an unsanitary 3-D printer and charged homeless individuals fees for fitting them.

The investigation began in late 2024 when the New York State Comptroller’s office found reimbursement claims submitted by Pearl Transit to be suspicious and initiated an audit. When audited, the defendants generated false documents using stolen identities. The state comptroller brought in the Department of Transportation Office of Inspector General, which referred the case to the U.S. Attorney’s Office.

What This Means for Ordinary People

This case highlights how oversight agencies detect fraudulent use of public assistance grants meant for vulnerable populations. Ordinary citizens, community members, or organizations that interact with local grant administrators can report suspicious activities to state comptrollers or federal inspector general offices. Staying vigilant helps protect resources intended for people in need, such as transit services and housing grants.

Following a multi-week jury trial in Utica, the jury found the defendants guilty of multiple counts, including wire fraud conspiracy, false statements, false documents, and aggravated identity theft. Sentencing before U.S. District Judge Anthony J. Brindisi is scheduled for January 21, 2027.

Anyone facing government investigations or criminal charges related to public benefit programs should consult a criminal defense attorney promptly to understand their legal rights and potential defenses.

This article is general information based on U.S. Department of Justice and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 3, 2026.