(WRGB) — Jael Watts, the owner of Pearl Transit Corp., has been indicted on federal fraud charges for allegedly attempting to steal more than $1.2 million in state and federal transportation funds, according to the New York State Comptroller’s Office.
Investigators say Watts operated a sham medical transportation service that falsely claimed to provide rides for seniors and people with disabilities across Suffolk, Putnam, Rockland, and Westchester counties.
In 2024, Pearl Transit entered into a contract with the New York State Department of Transportation (NYSDOT) to improve mobility for older adults and people with disabilities. The program was financed by a federal grant from the Federal Transit Administration (FTA).
Under the grant, the company was required to submit invoices for completed services. However, a review by the State Comptroller’s Office uncovered significant irregularities, sparking a joint investigation with the U.S. Department of Transportation Office of Inspector General (DOT OIG).
Investigators allege that in October 2024, Watts submitted three false invoices totaling $1,275,550 for transportation services that never took place. She also allegedly provided fabricated driver time records to support the fraudulent claims.
State Comptroller Thomas P. DiNapoli commended the collaborative investigation, stating,
“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 federal partners, her scam was exposed before any funds were paid.”
DiNapoli also expressed gratitude to Acting U.S. Attorney John A. Sarcone III and DOT OIG Special Agent in Charge Brian C. Gallagher for their partnership in protecting taxpayer money, emphasizing that the indictment serves as a warning against defrauding public programs.
Watts has been indicted on 10 counts of wire fraud and was arraigned before Judge Daniel J. Stewart in the U.S. District Court for the Northern District of New York.
