A fake transit company, a couple separated by two countries, and a federal program built to help elderly and disabled riders get to appointments they couldn’t otherwise reach — that’s the setup behind a $13 million fraud scheme that just ended in a federal conviction, and it’s worth understanding exactly how it worked.
What the Department of Justice actually announced
The U.S. Department of Justice announced on October 2 that a New Jersey woman, Jael Watts, 45, of Alloway, and her boyfriend, Luis Pino-Copete, 42, of Bogotá, Colombia, were convicted in connection with a scheme that sought more than $13 million through a shell transit company, according to the DOJ’s own press release. The pair actually obtained roughly $1.6 million before the fraud was caught. Sentencing is scheduled for January 21, 2027, with a maximum possible sentence of 20 years.
How the shell company was actually built
According to the DOJ’s account, Watts and Pino-Copete operated a shell company called Pearl Transit Corp., positioned to bill a federal program that reimburses transportation costs for elderly and disabled riders getting to medical appointments and other essential trips. A shell company in a scheme like this exists on paper well enough to submit invoices and collect payment, without actually providing the rides it bills for.
The gap between what they sought — over $13 million — and what they actually collected before being caught, about $1.6 million, tells you something about how these schemes typically get interrupted: not after the full amount is drained, but once billing patterns or audits catch an anomaly partway through.
Why this kind of fraud specifically targets elderly and disabled riders’ funding
Programs reimbursing non-emergency medical transportation exist because getting elderly and disabled people to appointments is a real, documented gap in how healthcare access works — without a ride, a scheduled appointment simply doesn’t happen. That makes these programs a target precisely because the population they serve often can’t easily verify or report whether a ride that was billed for actually occurred.
That’s not a detail in this case specifically confirmed by DOJ’s release, but it’s the structural reason transportation-reimbursement fraud shows up repeatedly in federal fraud prosecutions: the people the program serves are often the least equipped to catch the fraud happening around their own benefit.
What the international element adds to this case
Pino-Copete’s residence in Bogotá, while Watts operated from New Jersey, adds a cross-border element that likely complicated both the scheme’s logistics and its eventual investigation. Operating a U.S.-based shell company while a co-conspirator is based abroad is a pattern that shows up in federal fraud cases when defendants are trying to put distance between themselves and the funds or the paper trail.
DOJ’s release doesn’t detail exactly how the two coordinated operationally across that distance, so this article isn’t speculating about mechanics beyond what’s confirmed: two people, two countries, one shell company, one federal program.
What “convicted” means at this stage of the case
It’s worth being precise about where this case actually stands. Watts and Pino-Copete have been convicted — this is not an allegation or a pending charge, and reporting it as a conviction rather than an accusation reflects the DOJ’s own announcement of that outcome. Sentencing, however, hasn’t happened yet; January 21, 2027 is still ahead, and the maximum 20-year sentence cited is a ceiling, not a prediction of what either defendant will actually receive.
Why DOJ names Assistant Attorney General Colin M. McDonald in the release
AAG Colin M. McDonald was quoted in the DOJ’s announcement, part of the standard practice of having a senior Justice Department official comment publicly when a fraud prosecution results in a conviction — particularly one involving federal program funds meant for a vulnerable population.
That kind of statement typically frames the case within DOJ’s broader enforcement priorities around healthcare and program fraud, rather than offering new factual detail beyond what the underlying charges and conviction already establish.
What this means if you or a family member relies on this kind of program
If you or someone you care for uses non-emergency medical transportation benefits, this case is a reminder that the program itself isn’t the problem — fraud against it is, and it’s precisely the kind of fraud these programs are designed to eventually catch, even when it takes investigators time to unwind a shell company’s paper trail.
It’s also a reasonable prompt to stay a little more engaged with your own transportation benefit paperwork if you’re able to — knowing roughly what rides were billed under your name is a small habit that makes this exact kind of fraud harder to get away with.
What happens next in this case
The next confirmed date is January 21, 2027, when both defendants are scheduled to be sentenced. Nothing about the sentence itself is confirmed yet, and this article will reflect that outcome once it’s public rather than speculating on it now.
What’s confirmed today is a $13 million scheme against a program meant to help elderly and disabled riders, convictions for both people behind it, and the actual consequences still waiting on a January sentencing date.
This article was produced with the assistance of AI and reviewed by Womens Overview editors prior to publication.