Rides That Never Happened, Drivers Who Never Drove: Couple Convicted in $13 Million 'Pearl Transit' Fraud

Published Oct. 15, 2026. Case statuses are current as of that date.

Your name, your driver's license number, even a dead relative's identity can end up on paperwork you've never seen. Federal prosecutors say that is how a New Jersey woman and her husband convinced government agencies that their company was giving rides to elderly, disabled and homeless people.

A federal jury in Utica, New York, convicted Jael Watts, 45, of Alloway, New Jersey, and Luis Pino-Copete, 42, of Bogota, Colombia, of a nationwide scheme that sought more than $13 million in federal program funds through a shell company called Pearl Transit Corporation. The Justice Department announced the verdict Oct. 2, 2026 [1].

Status note: Both were convicted by a jury and are awaiting sentencing. Convictions can be appealed. The people whose identities were used are victims and are not named here.

How the scheme worked, as proven at trial

According to the Justice Department [1]:

1. A company on paper. Pearl Transit, headquartered in New Jersey, claimed to employ drivers across the country who gave rides to elderly and disabled people and did street outreach for homeless people. It employed no such drivers and performed no such services.
2. Federal pass-through money. From July 2019 to October 2025, Watts sought funds from state and local administrators of the Federal Transit Administration's Section 5310 program and HUD's Community Development Block Grant and Emergency Solutions Grant programs, some funded by the CARES Act.
3. Stolen identities. The defendants submitted false employment and customer records using stolen identities of real people. Some listed riders were dead at the time of their supposed rides; some listed drivers had no license and had never driven, including one who had only a learner's permit.
4. The audit cover-up. When New York's comptroller audited a nearly $750,000 reimbursement claim in late 2024, the defendants created more fake documents from stolen identities. Messages on their phones included Watts saying, "one has to be committed to this type of work . . . and I am committed," and, "they are not smart . . . we are much smarter."
5. Dentures from a home 3-D printer. In another part of the scheme, they sought grant reimbursement for "free" dental prostheses for homeless people while printing dentures at home on an unsanitary 3-D printer and charging homeless clients fees.

The government says the defendants obtained more than $1.6 million, including $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 [1].

Prosecutors say the money paid for over $100,000 in Porsche rentals, over $100,000 at a Manhattan luxury clothing store, and a nearly year-long travel spree in 2024 [1]. A Gwinnett County spokesperson told WSB-TV that the county checked Pearl Transit's documents against state and federal databases during its application review [2].

The people convicted

Jael Watts, 45, Alloway, N.J. [1]

• Arrested in July 2025 on a wire fraud complaint.
• Convicted of wire fraud conspiracy, five counts of wire fraud, false statement, false document, and aggravated identity theft (the government lists one aggravated identity theft count for her individually and one shared with Pino-Copete).

Luis Pino-Copete, 42, Bogota, Colombia [1]

• Married Watts in 2023 and joined the scheme in January 2024, according to prosecutors; charged in December 2025 and detained pending trial.
• Convicted of wire fraud conspiracy, false document, and aggravated identity theft. Prosecutors say he is not a U.S. citizen and faces removal after any prison term.

Sentencing is set for Jan. 21, 2027, before U.S. District Judge Anthony J. Brindisi. Each faces a two-year mandatory minimum, up to 20 years, and a restitution order of at least $1.9 million [1]. Court records list the case as No. 1:25-cr-00411 in the Northern District of New York [3].

Why this matters to ordinary consumers

The direct losers were public programs meant for people who need rides, shelter and dental care. But the scheme ran on the personal information of real people who had no idea their names and license numbers were being used as fake drivers and riders [1].

Red flags that your identity is being misused

• A letter about a job, wages or a benefit you never applied for.
• Income on your Social Security earnings record or tax transcript from an employer you never worked for.
• A relative's identity being used after death, such as mail or notices in a deceased person's name.

What to do

1. Check your Social Security earnings record at ssa.gov/myaccount and your IRS account at irs.gov for unfamiliar employers.
2. Freeze your credit at Equifax, Experian and TransUnion; it's free.
3. After a death in the family, notify Social Security and the credit bureaus and ask that the record be flagged as deceased.
4. Report identity theft at IdentityTheft.gov.
5. Report suspected grant or program fraud to the HUD or DOT Offices of Inspector General.

Case status (as of Oct. 15, 2026)

Defendant	Court	Status as of Oct. 15, 2026	Source
Jael Watts, 45, Alloway, N.J.	U.S. District Court, N.D.N.Y. (1:25-cr-00411)	Convicted by jury (announced Oct. 2, 2026) on all counts; sentencing Jan. 21, 2027	[1], [3]
Luis Pino-Copete, 42, Bogota, Colombia	Same	Convicted by jury (announced Oct. 2, 2026) on all counts; detained; sentencing Jan. 21, 2027	[1], [2]

Statuses can change. Convictions can be appealed.

Sources

1. U.S. Department of Justice, Office of Public Affairs, "New Jersey Woman, Colombian Lover Convicted in $13M Federal Program Fraud Scheme," Oct. 2, 2026 (updated Oct. 5, 2026). https://www.justice.gov/opa/pr/operation-thunder-hole-new-jersey-woman-colombian-lover-convicted-13m-federal-program-fraud
2. Matt Johnson, "Couple convicted after fake homeless nonprofit took grant money," WSB-TV, Oct. 6, 2026. https://www.wsbtv.com/news/local/couple-convicted-after-fake-homeless-nonprofit-took-grant-money/VSUIVOLEURFHRNFKMUVL25OUYE/
3. United States v. Watts and Pino-Copete, No. 1:25-cr-00411-AJB (N.D.N.Y.), Decision and Order, Dkt. No. 114, filed April 2, 2026 (via GovInfo). https://www.govinfo.gov/content/pkg/USCOURTS-nynd-1_25-cr-00411/pdf/USCOURTS-nynd-1_25-cr-00411-0.pdf

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