A federal jury has convicted two people who used a paper transportation company to pursue more than $13 million meant for elderly, disabled and homeless Americans.
Jael Watts of New Jersey and Luis Pino-Copete of Bogotá were found guilty after a multi-week trial in upstate New York. Prosecutors said their company, Pearl Transit, submitted invented payrolls, passenger lists and service records to state and local agencies distributing federal transportation and housing grants.
The company claimed to employ drivers around the country and to provide rides and street outreach. Trial evidence showed it had no such workforce and performed none of the services described in its reimbursement requests. Some listed passengers were already dead. Some supposed drivers had never driven a car.
The jury convicted both defendants of wire-fraud conspiracy, using false documents and aggravated identity theft. Watts was also convicted of five substantive wire-fraud counts and making a false statement. These are jury findings, not allegations awaiting trial.
Prosecutors proved that the pair obtained more than $1.6 million, including funds administered in Georgia, California and North Carolina, while seeking a much larger total. Financial records presented at trial traced spending on luxury clothing, vehicle rentals and extended travel. Investigators said the defendants continued manufacturing documents after New York auditors questioned reimbursement claims.
Sentencing is scheduled for January 21, 2027 before US District Judge Anthony Brindisi. The aggravated-identity-theft convictions carry a mandatory consecutive term, while the other counts expose the defendants to additional imprisonment, fines and restitution. Pino-Copete, who is not a US citizen, may also face removal after serving any sentence.
The case is a reminder that federal grant fraud is often prosecuted far from the place where the money originated. The critical jurisdiction may be where a false submission was sent, where administrators reviewed it or where proceeds moved, even when the scheme itself crossed many state and national borders.
