GWINNETT COUNTY, Ga. — A federal jury has convicted a couple of fraud in a scheme that prosecutors say took $529,500 in federal grant money from Gwinnett County, one of four local governments that paid their nonprofit.
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Jael Watts, 45, of New Jersey, and Luis Pino-Copete, 42, of Colombia, were convicted after a trial in Utica, the U.S. Attorney’s Office announced Friday.
The indictment says Watts’ nonprofit, Pearl Transit Corp., claimed to provide rides and outreach to the elderly and disabled. It names Gwinnett County and five other governments in New York, North Carolina and California as administrators of the federal money.
The indictment also says Watts answered a New York audit with fake records built from real people’s names and license numbers. The U.S. Attorney’s Office says some people listed as riders were dead when they supposedly got rides.
A Gwinnett County spokesperson says county staff checked the documents against state and federal databases during its application review.
Ashleigh Merchant, a criminal defense attorney at the Merchant Law Firm, said it could happen again.
“People are able to forge documents a whole lot easier than they were maybe 10 years ago,” Merchant said.
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Selfies the couple took in Europe, at a Tuscan spa and on a tour of a BMW plant, were offered at trial, the U.S. Attorney’s Office says.
Caren Morrison, a Georgia State University College of Law professor and former federal prosecutor, said the pictures give the government an edge.
“This is great stuff to put before a jury because it’s going to make any juror think they shouldn’t get away with this,” Morrison said. “They’re taking money away from other people who are more entitled to it,” Morrison said.”
Both face at least two years in prison and at least $1.9 million in restitution, the office says.
Scott Hulsey, an attorney at the law firm Barnes & Thornburg, said the people who review applications face a moving target.
“I think governments and companies are all going to have to be more and more sophisticated as the fraudsters become more so themselves,” Hulsey said.
U.S. District Judge Anthony J. Brindisi is scheduled to sentence both January 21.
A Gwinnett County spokesperson provided this statement:
“The application process for the Community Development Block Grant funds requires that each applicant submit several items that are used to review potential subrecipients. These items include, but are not limited to, the applicants Georgia Secretary of State Certification, 501(c)3 Determination Letter, Federal Unique Entity ID, Tax Form 990, and two years of audited financial statements. This ensures that each applicant has been reviewed by multiple layers of government and is eligible to receive federal funding.
“All required documentation was submitted by Pearl Transit Corp at the time of application review and was vetted with applicable state and federal databases to confirm eligibility. Federal investigators later determined that the organization had committed fraud through the creation of false documents and reached out to the County for assistance in their investigation. Gwinnett County staff worked closely with federal investigators to provide documentation in support of this prosecution.
“Restitution of funds in this case is pending sentencing in January 2027.”
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