A married couple has been found guilty of running a nationwide fraud scheme that allegedly diverted millions of dollars in federal funds meant to support elderly, disabled and homeless Americans, the US Department of Justice has announced.
Federal officials said the money was distributed through programmes administered by the US Department of Transportation and the Department of Housing and Urban Development.
Jael Watts, a New Jersey resident, and her husband, Luis Pino-Copete of Colombia, were accused of operating a shell company, Pearl Transit Corp., which claimed to provide transportation services for elderly and disabled people across the country and outreach services for homeless individuals.
Prosecutors said the company did not actually provide the services for which it received funding.
According to the Justice Department, Watts used stolen identities, fake payroll information and fabricated records between 2019 and 2025 to convince state and local administrators responsible for distributing federal funds that Pearl Transit had carried out transportation and homelessness outreach services.
Federal officials said some of the identities allegedly used in the scheme belonged to deceased people.
Pino-Copete joined the operation in 2024, about a year after he married Watts, authorities said. Watts had initially been charged with wire fraud through a criminal complaint filed in July 2025.
The jury found both defendants guilty of aggravated identity theft. Watts was additionally convicted of wire fraud and making false statements, while Pino-Copete was found guilty of conspiracy to commit wire fraud and an offence involving a false document.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said the convictions demonstrated the consequences of abusing government programmes designed to assist vulnerable people.
“These convictions send a clear message that those who exploit federal programs for personal gain will be held fully accountable,” McDonald said.
He added, “The defendants fabricated payrolls and client lists, even using the identities of deceased individuals, to siphon millions meant for the most vulnerable Americans.”
The couple could face significant prison terms following their convictions. They face a mandatory minimum sentence of two years and a maximum of 20 years in prison, as well as fines of up to $250,000 and as much as three years of supervised release.
The case highlights the federal government’s continued efforts to prosecute individuals accused of misappropriating public funds intended to provide essential services to vulnerable Americans.
