The owner of a medical transport company that serviced Suffolk County and other parts of New York State has been charged with running a fraudulent transportation scheme that defrauded the state of more than $1 million.
On October 17, 2025, New York State Comptroller Thomas P. DiNapoli, Acting U.S. Attorney for the Northern District of New York John A. Sarcone III, and U.S. Department of Transportation Acting Inspector General Mitch Behm announced that Jael Watts, the owner of Pearl Transit Corp., on 10 counts of wire fraud for her role in a scheme to defraud New York State of over $1.2 million in transportation grant funds.
Pearl Transit Corp. is 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 the nonprofit medical transport company 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 2024, Watts allegedly created and submitted three false invoices totaling $1,275,550 for trips that never occurred. Investigators found that Watts allegedly 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 counts of wire fraud and arraigned before Judge Daniel J. Stewart in the United States District Court for the Northern District of New York.
“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. “This indictment should serve as a warning to those attempting to steal public funds — you will be held accountable.”