A federal jury in Utica, New York, has convicted Jael Watts, 45, of Alloway, New Jersey, and Luis Pino-Copete, 42, of Bogota, Colombia, of running a fraudulent scheme to obtain federal funds intended for vulnerable populations, according to the U.S. Department of Justice.
The defendants operated Pearl Transit Corporation, a shell company registered in New Jersey that falsely claimed to employ drivers nationwide providing medical transportation and homeless outreach services. Between July 2019 and October 2025, they submitted requests for more than $13 million in federal funds and successfully obtained more than $1.6 million from government agencies in Georgia, California, and North Carolina.
Prosecutors presented evidence that the defendants fabricated payrolls and client lists using stolen identities, including those of deceased individuals. They also listed individuals as drivers despite their lack of valid licenses or driving experience.
Bank records revealed significant personal expenditures funded by the fraudulent proceeds, including more than $100,000 spent on Porsche rentals, over $100,000 at luxury retailer Loro Piana in Manhattan, and extended travel across Colombia, Aruba, and Europe.
Watts was convicted of false statements, aggravated identity theft, and five counts of wire fraud. Both defendants were convicted of wire fraud conspiracy, false document charges, and aggravated identity theft.
Sentencing is scheduled for January 21, 2027. Each defendant faces up to 20 years in prison, fines of up to $250,000, and restitution of at least $1.9 million. Pino-Copete also faces deportation following any prison term.
