A federal grand jury in Miami returned an indictment last week, charging a Florida business owner with multiple counts of wire fraud, money laundering, and forgery for allegedly orchestrating a sophisticated scheme to defraud the U.S. Department of Defense and other federal agencies.
The elaborate plot involved submitting altered and fake invoices to U.S. Navy ships and other vessels through the crucial SEA Card Program, which facilitates fuel purchases for U.S. vessels globally.
According to court documents filed in the Southern District of Florida, Jasen Butler, 37, of Jupiter, Florida, and owner of Independent Marine Oil Services LLC, is accused of defrauding the government of over $5 million.
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Between August 2022 and January 2024, Butler allegedly submitted dozens of falsified documents to multiple U.S. warships, including the USS Patriot, demanding and receiving payments for phony expenses he had not incurred. These ships were attempting to acquire vital fuel in international ports such as Saudi Arabia, Singapore, and Croatia.
The indictment further alleges that Butler went to great lengths to conceal his identity from government officials, using a false name and deceptively claiming employment by a fictitious fuel division of a different company. The millions in illicit proceeds, as alleged, were used by Butler for personal enrichment, including the purchase of multiple properties in Florida and Colorado.
“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.
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U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida echoed this sentiment, stating, “Our office is steadfast in its commitment to prosecute individuals that seek to unjustly profit at the expense of the U.S. military. Such fraud undermines military readiness and jeopardizes the dedicated service members who selflessly defend our country.”
The investigation into Butler’s alleged activities was a collaborative effort by the Coast Guard Investigative Service (CGIS), the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS), and the Naval Criminal Investigative Service (NCIS).
Special Agent in Charge Josh Packer of the CGIS Southeast Field Office highlighted the importance of their role, saying, “Investigating complex fraud schemes which impact U.S. Coast Guard operations is a priority for CGIS. 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.”
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If convicted, Butler faces severe penalties, including a maximum of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering. A federal district court judge will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant Chief Sara Clingan and Trial Attorney Jonathan Pomeranz of the Antitrust Division’s Washington Criminal Section.
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