A federal jury in the Northern District of New York has convicted Jael Watts, 45, of Alloway, New Jersey, and her Colombian husband, Luis Pino-Copete, 42, of Bogota, in a scheme that sought over $13 million in federal funds through false claims. The pair obtained $1.6 million before the scheme ended, according to the Justice Department. The verdict came on October 2, 2026, and sentencing is set for January 21, 2027.
What the jury decided in the Northern District of New York
The Justice Department’s release on Operation Thunder Hole describes a jury verdict, not a plea. Watts was convicted of one count of false statement, one count of aggravated identity theft and five counts of wire fraud. Both defendants were convicted of one count of wire fraud conspiracy, one count of false document and one count of aggravated identity theft.
Neither defendant has been sentenced. U.S. District Judge Anthony J. Brindisi will preside on January 21, 2027. The release lists a mandatory minimum of two years in prison, a maximum of 20 years, fines of up to $250,000 and up to three years of supervised release. Restitution will be at least $1.9 million, a figure higher than the $1.6 million the scheme actually collected.
Sought versus obtained: the $13 million and the $1.6 million
The two numbers in the case measure different things. The $13 million is what the defendants tried to get; the release says they sought over $13 million in federal funds. The $1.6 million is what reached them. Treating the larger figure as money stolen would overstate the loss, and the prosecutors’ own restitution floor of $1.9 million sits between the two.
The money came from four local governments that pass federal dollars through to community programs. Gwinnett County, Georgia, paid out $529,500 in Community Development Block Grant funds. The Los Angeles County Metropolitan Transportation Authority paid $429,885 in Section 5310 funds, a federal transit program for elderly and disabled riders. The City of Raleigh, North Carolina, paid $379,149, also in Section 5310 funds. Kern County, California, paid $283,000 in Emergency Solutions Grant funds, a HUD homelessness program. Added together, the four payments come to $1,621,534, consistent with the $1.6 million total.
Pearl Transit Corporation and the stolen identities
According to the release, the defendants ran a shell company called Pearl Transit Corporation. It submitted fabricated employment and ridership records to claim assistance meant for elderly, disabled and homeless people. The records relied on the identities of real people, including deceased individuals and people who do not hold driver’s licenses, which is the conduct behind the aggravated identity theft counts.
Assistant Attorney General Colin M. McDonald said in the release: “The defendants fabricated payrolls and client lists, even using the identities of deceased individuals, to siphon millions meant for the most vulnerable Americans.” The release says the defendants spent the money they obtained on luxury goods and travel.
The Section 5310 and local grant programs are the kind of pass-through funding that pays for rides and services for older residents. When a fraudulent applicant draws down those dollars, the shortfall lands on programs that were budgeted for riders and clients. The release does not say which services, if any, went unfunded in the four jurisdictions, and it does not attach a service loss to any of them.
A husband described as a lover: how the Justice Department labels Pino-Copete
The release uses more than one label for Pino-Copete. Its headline calls him a “Colombian lover,” and the text identifies him as a Colombian national and as Watts’ spouse, the two having married in Colombia in 2023. Because the legal relationship is stated, this article calls him her husband or partner rather than adopting the headline’s phrasing. The release also says he faces removal and deportation.
The agencies and prosecutors behind Operation Thunder Hole
Four bodies investigated: the Department of Transportation Office of Inspector General, the HUD Office of Inspector General, the New York State Comptroller’s Office and the U.S. Attorney’s Office for the Northern District of New York. Assistant U.S. Attorneys Benjamin S. Clark, Joshua R. Rosenthal and Michael J. Whalen are named in the release as the prosecutors.
The involvement of two federal inspectors general reflects where the money originated. The HUD inspector general polices Community Development Block Grant and Emergency Solutions Grant dollars, and the transportation inspector general covers Federal Transit Administration funds such as Section 5310. Those are the two grant families that Gwinnett County, Kern County, Los Angeles County and Raleigh each drew from in the payments the release itemizes.
What remains open before the January 2027 sentencing
A conviction is not the end of the case. Sentencing on January 21, 2027, will fix the prison terms and the final restitution order, which the release puts at a minimum of $1.9 million. Defense motions and any appeal would follow the court’s own schedule, and the release says nothing about either. The Justice Department’s account of the verdict, dated October 2, 2026, is the record of what the jury found.
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AI assistance was used in producing this article, which was reviewed against the official documents it cites.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
