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U.S. DEPARTMENT OF JUSTICE A1 FINANCIAL CRIME HIGH RISK Published 2 Oct 2026 at 12:00 UTC, affecting US, CO

DOJ: New Jersey Woman, Colombian Lover Convicted in $13 Million Federal Program Fraud Scheme

Jael Watts and Luis Pino-Copete were convicted for orchestrating a $13 million fraud scheme targeting U.S. federal program funds from the Department of Transportation and HUD. The funds were intended for vulnerable populations, and the case was announced by U.S. authorities.

Prepared automatically by complead Research from U.S. Department of Justice, published 2 Oct 2026.

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What happened

Jael Watts and Luis Pino-Copete were convicted for orchestrating a $13 million fraud scheme targeting U.S. federal program funds from the Department of Transportation and HUD. The funds were intended for vulnerable populations, and the case was announced by U.S. authorities.

Named in this item

11 entities
STATUS NAME ISO PROGRAM IDENTIFIER
Jael Watts
Person, convicted
Screen this name US — —
Luis Pino-Copete
Person, convicted
Screen this name CO — —
John A. Sarcone III
Person, official
Screen this name US — —
Thomas P. DiNapoli
Person, official
Screen this name US — —
Brian Gallagher
Person, official
Screen this name US — —
Shawn Rice
Person, official
Screen this name US — —
U.S. Department of Transportation
Organization, victim US — —
U.S. Department of Housing and Urban Development
Organization, victim US — —
U.S. Department of Justice
Organization, regulator US — —
HUD-OIG
Organization, regulator US — —
DOT-OIG
Organization, regulator US — —

What compliance teams should check

  • Review exposure to federal program fraud risks
  • Update internal controls for government fund disbursements
  • Monitor for similar fraud typologies involving public funds
  • Assess customer due diligence for links to convicted individuals
FOR COMPLIANCE TEAMS

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FROM THE NOTICE Jael Watts, 45, of Alloway, New Jersey, and Luis Pino-Copete, 42, of Bogota, Colombia, were convicted by a jury of orchestrating a sweeping nationwide scheme to steal millions of dollars in federal program funds administered by the U.S. Department of Transportation (“DOT”) and the U.S. Department of Housing and Urban Development (“HUD”), designed to benefit elderly, disabled, and homeless Americans. First Assistant U.S. Attorney John A. Sarcone III, New York State Comptroller Thomas P. DiNapoli, Brian Gallagher, Special Agent-in-Charge, U.S. DOT – Office of Inspector General (“OIG”), Northeastern Region, and Shawn Rice, Special Agent-in-Charge, HUD-OIG, Northeast Region, made the announcement. This action is a part of the Trump Administration’s Task Force to Eliminate Fraud. U.S. Department of Justice, 2 Oct 2026, 12:00 UTC, justice.gov

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Each item is classified by category, pinned to the jurisdictions it affects and scored from 0 to 10. The score starts from a model assessment of how serious the item is, then adds points for the kind of event, what it names and the source behind it. Reliability grades run from A1 (the regulator’s own notice) to C3 (a single secondary source).

AML News Radar reports what its sources publish. Summaries, categories and scores are automated; read the original notice before acting. It is not legal advice and not a screening decision.

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