New Jersey woman, Colombian lover convicted in $13 MILLION payroll fraud scheme abusing taxpayer-funded program for elderly, homeless

Jael Watts, 45, of Alloway, New Jersey, and Luis Pino-Copete, 42, of Bogota, Colombia, were convicted by a jury in the scheme taking money from a federal program with the US Department of Transportation and the US Department of Housing & Urban Development. The program was designed to help elderly, disabled, and homeless Americans.

The two fraudsters "operated a shell company called Pearl Transit Corporation, headquartered in New Jersey, which purported to employ drivers all over the United States who gave rides to the elderly and disabled and engaged in street outreach for homeless Americans," the DOJ said.

Source: DOJ

However, in reality, their company had no drivers and did not perform such services. Between 2019 and 2025, "Watts devised and executed a scheme to defraud numerous state and local administrators of federal pass-through funds designed to help the needy."

The fraudsters sought to be reimbursed for $13 million in federal funds by making false claims and submissions and were discovered to be living a lavish lifestyle with at least $1.6 million that they made in the scheme.

Watts married Pino-Copete in Colombia in 2023, and the Colombian national soon joined in on the scheme.

“These two defendants traded their Tuscan spa robes for his and hers orange jumpsuits,” First Assistant US Attorney Sarcone said. “I commend the hawkish work of OSC and our federal partners and thank my Assistant U.S. Attorneys for their tireless work in delivering these fraudsters justice. Had they been referred to state or local authorities for prosecution due to the irresponsible no bail laws here in NYS these two could have fled to Colombia.”