Jasen Butler, Multimillion-Dollar Fuel Scheme, Florida 2024

MIAMI – A federal grand jury in Miami returned an indictment charging Jasen Butler, 37, of Jupiter, Florida, the owner of Independent Marine Oil Services LLC, with multiple counts of wire fraud, money laundering, and forgery for orchestrating a scheme to defraud the U.S. Department of Defense and other federal agencies.

According to court documents filed in the Southern District of Florida, between August 2022 and January 2024, Butler submitted dozens of falsified documents to multiple U.S. warships — including the USS Patriot — demanding and receiving over $5 million dollars in payments for phony expenses that Butler had not incurred.

Butler also concealed his identity from government officials by using a false name and feigning employment by a fictitious fuel division of a different company. As alleged in the indictment, Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including 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.”

The indictment alleges that Butler used the SEA Card Program, which allows U.S. vessels to purchase critical fuel from suppliers at ports around the world, to submit altered and fake invoices to U.S. Navy ships and other vessels.

If convicted, Butler faces maximum penalties 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 any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service. Assistant Chief Sara Clingan and Trial Attorney Jonathan Pomeranz of the Antitrust Division’s Washington Criminal Section are prosecuting the case.

Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local.

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