Two Convicted in $13 Million Federal Fraud Scheme
Jael Watts and Luis Pino-Copete were found guilty of using a shell company to steal federal grant money.
Updated on Oct. 2, 2026 in Financial Crime
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A jury has convicted Jael Watts and Luis Pino-Copete for operating a scheme that targeted over $13 million in federal funds. The pair used a shell company to submit false claims under the guise of helping elderly, disabled, and homeless residents.
Why it matters
The fraud diverted resources intended for vulnerable populations, including the elderly and disabled, into the pockets of the defendants. The operation specifically exploited federal programs administered by the U.S. Departments of Transportation and Housing and Urban Development.
Jael Watts and Luis Pino-Copete were convicted of federal program fraud and now face up to 20 years in prison. Their sentencing is scheduled for January 21, 2027.
The players
Jael Watts
A 45-year-old resident of Alloway, New Jersey, who was convicted of federal program fraud.
Luis Pino-Copete
A 42-year-old resident of Bogota, Colombia, who was convicted of federal program fraud.
The details
The defendants utilized a shell company called Pearl Transit Corporation to submit fraudulent employment and customer data. By stealing the identities of real individuals, they successfully secured over $1.6 million in federal grants, which they used to fund a lavish lifestyle.
Timeline
January 21, 2027: Sentencing for Jael Watts and Luis Pino-Copete
Legal Context
This case reflects a broader crackdown on complex financial crimes involving federal grant programs. The conviction follows a trend of aggressive federal enforcement under the False Claims Act, which allows the government to recover funds lost to fraudulent shell company schemes.
This case highlights the vulnerability of federal aid programs to identity theft and shell company fraud. Local residents should remain vigilant regarding the security of their personal identities, as the defendants used stolen credentials to bypass oversight.
The takeaway
This case serves as a reminder that federal authorities are increasingly focused on identifying and prosecuting shell company operators who exploit social safety nets. Protecting personal identity information is essential to preventing it from being weaponized in these types of financial crimes.
What happens next
Jael Watts and Luis Pino-Copete are scheduled to appear in court for sentencing on January 21, 2027.
Further reading
For more information on regional investigations, visit the Financial Crime section.
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Do you trust the federal government to effectively oversee and prevent fraud in its grant programs?
