A New Jersey woman and a Colombian man have been convicted in a federal fraud case involving over $13 million in false claims tied to programs for elderly, disabled, and homeless individuals. Jael Watts, 45, of Alloway, New Jersey, and Luis Pino-Copete, 42, of Bogotá, Colombia, were found guilty after prosecutors proved they used fake records and stolen identities to secure federal funding through their company, Pearl Transit Corporation.
The company claimed to employ drivers nationwide for transportation services and street outreach, but prosecutors said it never provided those services or hired the drivers listed in its records. From July 2019 to October 2025, the pair submitted fraudulent claims under multiple federal programs, including the Federal Transit Administration’s Section 5310 Program and housing initiatives funded by the Department of Housing and Urban Development. Some funds came through COVID-19 relief programs under the CARES Act.
Federal investigators found the defendants received at least $1.6 million from the scheme, including payments from Gwinnett County, Georgia ($529,500), Los Angeles County ($429,885), Kern County, California ($283,000), and Raleigh, North Carolina ($379,149). Bank records showed the money was spent on luxury items, including $100,000 on Porsche rentals and $100,000 at Loro Piana, along with international travel to Colombia, Aruba, and Europe.
The fraud began after Watts submitted a $750,000 claim under the Section 5310 Program in New York, prompting an audit by the New York State Comptroller’s Office. Investigators later searched Watts’ phone and computer, uncovering communications about fabricating documents to support the claims. Pino-Copete was charged in December 2025 after the probe expanded.
Fake Services and Identity Theft
Prosecutors also alleged the defendants falsely claimed to provide free dental prostheses for homeless individuals. Evidence showed the dentures were produced at their home using a 3-D printer, with clients charged for scanning and fitting services. The scheme relied on stolen identities, including those of deceased individuals, and fake employment records for drivers who lacked licenses or driving experience.
Watts was convicted of false statements, aggravated identity theft, and five counts of wire fraud. Both defendants were found guilty of conspiracy to commit wire fraud, false document charges, and aggravated identity theft. Sentencing is set for January 21, 2027, with 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.
