A federal jury in Utica convicted Jael Watts and Luis Pino‑Copete for operating Pearl Transit Corp., a shell company that sought more than $13 million in federal reimbursements for services it never provided. Prosecutors say the scheme (2019–2025) used stolen identities and fake records to obtain over $1.6 million from multiple states and included a separate fraud involving 3‑D‑printed dentures sold to homeless clients. The defendants allegedly spent proceeds on luxury rentals, designer goods and extended travel; both face 2–20 years in prison and will be sentenced in January.
Couple Convicted After Using Fake Records To Steal Millions From Programs For Elderly, Disabled And Homeless
A couple was convicted of using stolen identities and fake records to steal millions of dollars from federal programs for vulnerable people. File Photo by Bonnie Cash/UPI
A federal jury in Utica, N.Y., convicted Jael Watts, 45, of New Jersey, and Luis Pino‑Copete, 42, of Colombia, for running a scheme that used stolen identities and fabricated records to siphon federal funds meant to help elderly, disabled and homeless people.
Case Details
Prosecutors say the pair operated a shell company called Pearl Transit Corp. that applied for more than $13 million in federal reimbursements by claiming to provide transportation and outreach services nationwide. Investigators found the company produced no legitimate drivers or outreach services and that many of the records submitted were fictitious.
How The Scheme Worked
Between 2019 and 2025, Watts allegedly used stolen identities to create fake employment and customer records supporting reimbursement claims. Some of the individuals Pearl Transit said it transported were already deceased, and several purported drivers had no driver’s licenses and had never driven a vehicle.
In a separate element of the fraud, the defendants claimed to provide free dentures to homeless people. Prosecutors say the couple instead 3‑D‑printed dentures at home and charged homeless clients for mouth scans and fittings.
Proceeds And Lifestyle
Authorities say the scheme brought in more than $1.6 million from programs in Georgia, California and North Carolina. Prosecutors allege the defendants spent the proceeds on an extravagant lifestyle, including in excess of $100,000 on Porsche rentals, roughly $100,000 at luxury retailer Loro Piana, and nearly a year of travel through Colombia, Aruba and parts of Europe.
Investigation, Arrest And Convictions
The investigation began in 2024 after Watts requested nearly $750,000 from the New York State Department of Transportation. Auditors flagged irregular invoices and referred the case to federal investigators. Watts was arrested in July 2025.
According to prosecutors, Pino‑Copete continued to assist Watts in producing false documents after her arrest, including while she was detained. A federal jury convicted both defendants of conspiracy to commit wire fraud, use of false documents and aggravated identity theft. Watts was additionally convicted on five counts of wire fraud and one count of making a false statement.
Potential Penalties
Both defendants face prison terms ranging from two to 20 years and are scheduled to be sentenced in January.
Note: All charges and convictions are based on the jury’s findings and reported court records.
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