Jury convicts pair accused of using fake records to obtain funds.
A New Jersey woman and a Colombian man have been convicted in a federal fraud case involving more than $13 million in claims tied to programs meant to help elderly, disabled and homeless people. The duo, Jael Watts, 45, of Alloway, New Jersey, and Luis Pino-Copete, 42, of Bogota, Colombia, were found guilty by a federal jury after prosecutors said they used fake records and stolen identities to seek federal funds. The case centered on Pearl Transit Corporation, a New Jersey company operated by Watts and Pino-Copete. The company claimed to employ drivers across the country who transported elderly and disabled people and provided street outreach services to homeless people. Federal prosecutors said the company did not actually provide those services and did not employ the drivers listed in its records.
From July 2019 through October 2025, the duo submitted claims for federal money using false employment and customer information, according to court evidence. The records included identities belonging to real people, including some who had died. Some people listed as drivers did not have driver’s licenses and had never driven a car, prosecutors said. The defendants sought more than $13 million through several federal programs. Those programs included the Federal Transit Administration’s Section 5310 Program, along with housing programs funded through the Department of Housing and Urban Development. Some of the money came through programs supported by the CARES Act during the COVID-19 pandemic.
The government said the duo actually received more than $1.6 million in federal funds through the scheme. Four payments listed by prosecutors included $529,500 from Gwinnett County, Georgia, $429,885 from the Los Angeles County Metropolitan Transportation Authority, $283,000 from Kern County, California, and $379,149 from the City of Raleigh, North Carolina. Prosecutors said the money was used to support an expensive lifestyle. Bank records showed more than $100,000 spent on Porsche rentals and more than $100,000 at Loro Piana, a luxury clothing company in Manhattan. The records also showed extensive travel during 2024, including trips to Colombia, Aruba and Europe.
The investigation began after Watts submitted a claim seeking nearly $750,000 through the Section 5310 Program in New York. The New York State Comptroller’s Office questioned the invoices and began an audit. Investigators said Watts and Pino-Copete then created additional false records in an effort to support the claims.
The investigation expanded after federal investigators searched Watts’ phone and computer following her arrest in July 2025. The search uncovered communications between the two defendants about creating documents in response to the audit. Pino-Copete was later charged in December 2025.
The case also included claims involving dental services for homeless people. Prosecutors said the defendants sought federal reimbursements by claiming they provided free dental prostheses. Evidence presented at trial showed that dentures were instead produced at the defendants’ home with a 3-D printer, and homeless clients were charged fees for scanning and fitting the dentures.
Watts and Pino-Copete were convicted of several federal offenses following a trial that lasted several weeks in Utica, New York. Watts was found guilty of false statement, aggravated identity theft and five counts of wire fraud. Both defendants were convicted of conspiracy to commit wire fraud, false document charges and aggravated identity theft.
Sentencing is scheduled for January 21, 2027, before U.S. District Judge Anthony J. Brindisi. Each defendant faces a mandatory minimum sentence of two years and a possible maximum sentence of 20 years, along with fines of up to $250,000. They also face supervised release and a restitution order of at least $1.9 million.
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New Jersey Woman and Colombian Man Charged with Wire Fraud Conspiracy
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