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. Butler was found guilty of orchestrating a scheme that 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.
Prosecutors presented evidence that Butler, owner of Independent Marine Oil Services LLC, submitted fake invoices and wire transfer memos to U.S. Navy and Coast Guard ships through the SEA Card Program between August 2022 and January 2024. This program allows military vessels to purchase fuel for global operations. The documents targeted multiple warships—including the USS Patriot—in ports such as Saudi Arabia, Singapore, and Croatia.
Authorities said Butler received millions in payments for expenses he did not incur and used the funds to buy luxury properties in Florida and Colorado. After being investigated by Navy officials, Butler allegedly concealed his identity by using a false name and pretending to work for a fictitious company division.
Attorney General Pamela Bondi stated: “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 commented: “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 added: “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 from the Coast Guard Investigative Service said: “The Coast Guard Investigative Service is pleased with the jury’s verdict in this case… 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 from DCIS stated: “The guilty verdict in this case is a direct result of our commitment to safeguarding the Department of Defense’s critical supply chain… DCIS… will relentlessly pursue and hold accountable those who seek to defraud our military.”
Special Agent Greg Gross from NCIS added: “Those who profit from illicit schemes that defraud the American people… will be held accountable… NCIS… remain committed to rooting out criminal activity that undermines public trust in the integrity of the Department of the Navy’s procurement process.”
Butler faces up to 20 years per count for wire fraud charges; up to 10 years each for forgery or money laundering counts; sentencing is scheduled for April 8, 2026.
The investigation was conducted by several agencies including Coast Guard Investigative Service (CGIS), Defense Criminal Investigative Service (DCIS), Naval Criminal Investigative Service (NCIS), under coordination with the Procurement Collusion Strike Force (PCSF). The PCSF was established by the Justice Department in November 2019 as an interagency effort against antitrust crimes affecting government procurement at all levels.
Anyone with information related to bid rigging or similar conduct can contact PCSF through its website above or learn about whistleblower rewards at this link. Case details are available on the District Court website under case number 25-cr-80093.
