New Jersey couple convicted in $13 million federal fraud scheme

A New Jersey woman and a Colombian man have been convicted in a federal fraud scheme involving more than $13 million in fraudulent claims. Jael Watts, 45, and Luis Pino-Copete, 42, operated Pearl Transit Corporation, a company that claimed to provide transportation for elderly, disabled, and homeless individuals.

Federal prosecutors established that the company did not actually provide these services or employ the drivers listed in its records. Instead, the duo used stolen identities and fake records—including the identities of deceased individuals—to seek funds from various federal programs, such as the Federal Transit Administration’s Section 5310 Program and Department of Housing and Urban Development housing programs. The scheme also utilized funds supported by the CARES Act.

While the pair attempted to claim upwards of $13 million, they successfully received more than $1.6 million in federal funds. These payments were distributed across several jurisdictions, including Gwinnett County, Georgia; Los Angeles County, California; Kern County, California; and the City of Raleigh, North Carolina. Authorities stated the stolen money was spent on luxury vacations, cars, and clothing.