New York State Comptroller Thomas P. DiNapoli, along with Acting United States Attorney for the Northern District of New York John A. Sarcone III and Acting Inspector General for the U.S. Department of Transportation Office of Inspector General Mitch Behm, announced that Jael Watts, owner of Pearl Transit Corp., has been indicted on ten counts of wire fraud. The charges stem from an alleged 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.”
Watts, 44, owns Pearl Transit Corp., a non-profit organization claiming 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) funded by a federal grant from the Federal Transit Administration. The contract’s purpose was to provide transportation services to seniors and people with disabilities in Suffolk, Putnam, Rockland, and Westchester counties.
To receive payment under the grant program, Pearl Transit needed to submit invoices for services rendered. The New York State Comptroller’s office reviewed these invoices as part of its audit duties and identified discrepancies that led to further investigation with the U.S. Department of Transportation Office of Inspector General.
The investigation found that beginning in October 2024, Watts submitted three fraudulent invoices totaling $1,275,550 for trips that did not occur. Investigators also determined she created fake supporting documents such as time records for drivers who never worked at her company.
Watts was indicted on ten counts of wire fraud and appeared before Judge Daniel J. Stewart at the United States District Court for the Northern District of New York.
Authorities emphasized that all charges are accusations at this stage and that defendants are presumed innocent unless proven guilty.
Since 2007, Comptroller DiNapoli has focused on combating public corruption and encourages New Yorkers to report suspected fraud involving taxpayer funds through his office’s hotline or email.
