A federal jury in West Palm Beach has convicted a Florida fuel supplier on 34 felony counts for orchestrating a multimillion-dollar scheme to defraud the U.S. Department of War and other federal agencies, federal prosecutors announced Friday.
Jason Butler, 37, of Jupiter, Florida, was found guilty of wire fraud, money laundering and forgery related to a scheme that prosecutors say siphoned more than $4.5 million from the U.S. government. Following the verdict, U.S. District Judge Donald M. Middlebrooks immediately ordered Butler remanded into custody at the government’s request.
According to the indictment and evidence presented at trial, Butler, the owner of Independent Marine Oil Services LLC, submitted altered and fake invoices through the SEA Card Program, which allows U.S. Navy and Coast Guard vessels to purchase fuel necessary for military operations worldwide. Prosecutors said Butler provided falsified wire transfer memos and invoices to multiple U.S. warships, including the USS Patriot, between August 2022 and January 2024.
The fraudulent submissions were tied to fuel purchases allegedly made in international ports such as Saudi Arabia, Singapore and Croatia. In reality, Butler had not incurred the expenses, yet he received more than $4.5 million in payments for the phony charges, according to trial evidence.
When Navy officials began scrutinizing his activities, Butler allegedly attempted to continue the scheme by concealing his identity. Prosecutors said he adopted a false name and claimed to work for a fictitious fuel division of another company. Authorities also said Butler used the proceeds from the fraud to enrich himself and purchase multiple multimillion-dollar properties in Florida and Colorado.
“This defendant brazenly defrauded the U.S. Military out of millions of dollars and put critical fuel resources at risk, all to fund his cushy and fictitious lifestyle,” Attorney General Pamela Bondi said in a statement. “The Department of Justice will continue to uncover these schemes and bring perpetrators to justice to protect the American people and their tax dollars.”
Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division said Butler “defrauded his own country in order to unjustly line his own pockets,” adding that despite using a fake identity, job and invoices, “a jury of his peers saw through it and found him guilty of 34 felonies.”
Federal investigators also praised the verdict, calling it a warning against fraud targeting military operations. Acting Assistant Director Josh Packer of the Coast Guard Investigative Service said the case sends “a strong message that fraud against our military and the American taxpayer will not be tolerated.”
Special Agent in Charge Jason J. Sargenski of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service said the scheme threatened a supply chain essential to global military operations, while NCIS Special Agent in Charge Greg Gross said Butler exploited the integrity of the SEA Card Program, a key logistical tool for U.S. Navy refueling and mission readiness.
Sentencing is scheduled for April 8, 2026. Butler faces a maximum of 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. A federal judge will determine the final sentence after considering U.S. Sentencing Guidelines and other statutory factors.
