Miami, FL – A business owner from Florida has been indicted on several charges, including wire fraud, money laundering, and forgery, related to a scheme aimed at defrauding the U.S. Department of Defense (DoD) and other federal entities. Jasen Butler, 37, hailing from Jupiter, Florida, is alleged to have submitted fraudulent invoices for fuel purchases made by U.S. Navy ships, such as the USS Patriot, via the SEA Card Program. The fraudulent activities are thought to have taken place between August 2022 and January 2024, leading to more than $5 million in illicit profits.
The Scheme: Fake Invoices and Phony Expenses
Butler, the owner of Independent Marine Oil Services LLC, is accused of employing various deceptive strategies to take advantage of the system meant to provide fuel to U.S. naval ships and other vessels while they are docked in international ports.
The SEA Card Program enables U.S. vessels to acquire necessary fuel from suppliers at ports globally. Federal prosecutors allege that Butler submitted altered and counterfeit invoices for fuel purchases at international ports, such as Saudi Arabia, Singapore, and Croatia, inflating prices and billing for services that did not exist.
To further hide his actions, Butler is said to have used a fake name and falsely claimed to work for a non-existent fuel division of another company, thereby masking his real identity from government officials. His fraudulent invoices were sent to several U.S. warships, including the USS Patriot, for payment.
The alleged fraud enabled Butler to enrich himself personally, as he used the millions of dollars obtained from the scheme to buy several properties in Florida and Colorado. These purchases were financed by the proceeds from the fraudulent payments he received from the U.S. Navy and various government agencies.
“This indictment sends a clear message: the Department of Justice will relentlessly pursue those who defraud the U.S. military and exploit taxpayer dollars for personal gain,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.
The Impact on National Security & Potential Penalties
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida stressed the severity of the fraud, highlighting how such criminal activity undermines national security. “This type of fraud jeopardizes the integrity of military operations and undermines the readiness of our forces,” O’Byrne said. “We will continue to hold accountable those who seek to unjustly profit at the expense of the U.S. military and taxpayers.”
“Mr. Butler’s alleged actions are an affront to our service members and taxpayers,” said Special Agent in Charge Greg Gross of NCIS’s Economic Crimes Field Office. “NCIS will continue to thoroughly investigate and bring to justice those who manipulate government contracts to line their own pockets.”
If found guilty, Butler could be looking at a lengthy prison sentence. Each wire fraud charge may come with a maximum sentence of 20 years, and each forgery charge could add up to 10 years. Furthermore, the money laundering allegations might bring an additional 10 years behind bars. The final sentencing will be decided by a federal district court judge, who will take into account the U.S. Sentencing Guidelines along with other pertinent factors.
