A federal jury in West Palm Beach has convicted Jasen Butler, 37, of Jupiter, Florida, on 34 felony counts including wire fraud, money laundering, and forgery. The charges stem from a scheme in which Butler defrauded the U.S. Department of War and other federal agencies out of more than $4.5 million. Following the verdict, U.S. District Judge Donald M. Middlebrooks ordered Butler into custody.
According to evidence presented at trial, Butler owned Independent Marine Oil Services LLC and submitted falsified documents such as wire transfer memos and invoices to multiple U.S. Navy and Coast Guard ships via the SEA Card Program between August 2022 and January 2024. This program allows U.S. vessels to purchase fuel needed for military operations globally. The fraudulent activity involved warships attempting to buy fuel in ports like Saudi Arabia, Singapore, and Croatia.
Authorities stated that Butler received over $4.5 million for expenses he never incurred by submitting fake invoices for fuel purchases. When his actions drew attention from Navy officials, he continued the scheme by using a false identity and pretending to work for a fictitious company division. Prosecutors said Butler used the proceeds to buy several high-value properties in Florida and Colorado.
Attorney General Pamela Bondi commented: “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. 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 added: “The defendant — a convicted felon — defrauded his own country in order to unjustly line his own pockets. He deprived the United States Armed Forces of the resources they need to help keep our country safe. Despite his fake identity, fake job, and fake invoices, a jury of his peers saw through it and found him guilty of 34 felonies. We salute our wonderful trial team and applaud Judge Middlebrooks’s decision to imprison the defendant for his crimes pending sentencing.”
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida said: “This defendant didn’t just commit fraud, he betrayed the trust placed in those who support our nation’s warfighters... Today’s verdict makes clear that schemes targeting our military supply chain will be met with swift accountability and severe consequences.”
Acting Assistant Director Josh Packer of the Coast Guard Investigative Service stated: “The Coast Guard Investigative Service is pleased with the jury’s verdict in this case, which sends a strong message that fraud against our military and the American taxpayer will not be tolerated... CGIS remains committed to protecting the integrity of federal procurement and ensuring that those who seek to exploit government resources are brought to justice.”
Special Agent in Charge Jason J. Sargenski (DCIS) remarked: “The guilty verdict in this case is a direct result of our commitment to safeguarding the Department of Defense's critical supply chain... DCIS, working alongside our law enforcement partners, will relentlessly pursue and hold accountable those who seek to defraud our military and exploit systems designed to support our nation's warfighters.”
Special Agent in Charge Greg Gross (NCIS) noted: “Those who profit from illicit schemes that defraud the American people and place our warfighters and national security at risk will be held accountable... NCIS and our law enforcement partners remain committed to rooting out criminal activity that undermines public trust in the integrity of the Department of the Navy’s procurement process.”
Butler is scheduled for sentencing on April 8, 2026; he faces up to 20 years per count for wire fraud charges as well as up to 10 years each for forgery or money laundering counts.
The investigation was conducted by multiple agencies including Coast Guard Investigative Service (CGIS), Defense Criminal Investigative Service (DCIS), Naval Criminal Investigative Service (NCIS), under the Department’s Procurement Collusion Strike Force (PCSF). The PCSF was established by the Justice Department in November 2019 as an interagency effort targeting antitrust crimes affecting government procurement at all levels.
Trial Attorneys Jonathan Pomeranz, Ebonie Branch, Haley Pennington (Antitrust Division), along with Deputy Chief Elizabeth Young from the Southern District of Florida U.S. Attorney’s Office prosecuted this case.
More information about reporting procurement-related crimes can be found at www.justice.gov/procurement-collusion-strike-force or www.justice.gov/atr/whistleblower-rewards.
Related court documents are available through the PACER system or on the District Court website under case number 25-cr-80093.
