A federal grand jury in Miami has indicted Jasen Butler, a 37-year-old Florida business owner, on multiple counts of wire fraud, money laundering, and forgery for allegedly orchestrating a scheme to defraud the U.S. Department of Defense and other federal agencies.
Butler is accused of submitting altered and fake invoices to U.S. Navy ships through the SEA Card Program, which allows vessels to purchase critical fuel from suppliers worldwide.
Court documents filed in the Southern District of Florida state that between August 2022 and January 2024, Butler, owner of Independent Marine Oil Services LLC in Jupiter, Florida, submitted dozens of falsified invoices to several U.S. warships — including the USS Patriot. These fraudulent invoices demanded and secured over $5 million in payments for fuel expenses Butler never incurred. The Navy ships involved were purchasing fuel at international ports such as Saudi Arabia, Singapore, and Croatia.
Butler allegedly concealed his identity by using a false name and falsely claiming to work for a fictitious fuel division of another company. According to the indictment, he used the fraud proceeds to enrich himself personally, purchasing multiple properties in Florida and Colorado.
“Our office is steadfast in its commitment to prosecute individuals that seek to unjustly profit at the expense of the U.S. military,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Such fraud undermines military readiness and jeopardizes the dedicated service members who selflessly defend our country.”
“This indictment sends a clear, public message: the Antitrust Division and its Procurement Collusion Strike Force under President Trump will not rest until all who defraud the brave men and women of the U.S. military and the American taxpayers receive swift justice,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.
“Investigating complex fraud schemes which impact U.S. Coast Guard operations is a priority for CGIS,” said Special Agent in Charge Josh Packer of the Coast Guard Investigative Service (CGIS) Southeast Field Office. “CGIS remains committed to working with our law enforcement partners to investigate any fraud which undermines the integrity of the Coast Guard’s supply chain.”
“Mr. Butler’s alleged involvement in unlawfully submitting fraudulent invoices related to U.S. naval ships receiving fuel during port visits is an affront to the warfighter and taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to thoroughly investigating those who commit fraud impacting the Department of Navy.”
If convicted, Butler faces up to 20 years in prison for each wire fraud count, up to 10 years for each forgery count, and up to 10 years for each money laundering count. Sentencing will be determined by a federal judge based on sentencing guidelines and other factors.
The investigation involved the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service.
