New York State Comptroller Thomas P. DiNapoli, Acting United States Attorney for the Northern District of New York John A. Sarcone III, and Acting Inspector General for U.S. Department of Transportation Office of Inspector General Mitch Behm announced the indictment of Jael Watts, the owner of Pearl Transit Corp., on ten counts of wire fraud for her role in a scheme to defraud New York State of over $1.2 million in transportation grant funds.
“Jael Watts allegedly devised a fraud scheme to cheat New York State out of money meant to aid residents in need of transportation services. Thanks to my office and our partnership with federal law enforcement, her scam was exposed, and no money was paid,” said DiNapoli. “My thanks to Acting United States Attorney for the Northern District John A. Sarcone III and Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, Northeast Region, Brian C. Gallagher for their partnership in protecting taxpayers’ money. This indictment should serve as a warning to those attempting to steal public funds – you will be held accountable.”
Jael, 44, is the owner of Pearl Transit Corp., a non-profit company that claims to provide transportation assistance to seniors and people with disabilities. In 2024, Pearl Transit entered into a contract with the New York State Department of Transportation (NYS DOT) to “enhance the mobility” of seniors and people with disabilities in Suffolk, Putnam, Rockland, and Westchester counties by providing transportation services. The contract was funded by a pass-through federal grant from the Federal Transit Administration.
To receive payment under the grant, Pearl Transit was required to submit invoices to the state for services provided. As part of the State Comptroller’s duty to audit state payments, DiNapoli’s office reviewed the invoices submitted by Pearl Transit and identified inconsistencies, leading to a joint investigation with U.S. Department of Transportation Office of Inspector General.
The investigation revealed that starting in October of 2024, Watts created and submitted three false invoices totaling $1,275,550 for trips which never occurred. Investigators found that Watts fabricated proof to support these fraudulent trips, including fake time records for supposed drivers who never worked for her company.
Watts was indicted on 10 ten counts of wire fraud and arraigned before Judge Daniel J. Stewart in the United States District Court for the Northern District of New York.
The charges filed in this case are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.
Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by emailing a complaint to [email protected] or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.