A federal jury in West Palm Beach in Florida has found 37-year-old Jasen Butler guilty of 34 felonies, including wire fraud, money laundering, and forgery for orchestrating a scheme to defraud the US Department of War and other federal agencies out of over US$4.5 million.
After the verdict, US District Judge Donald M. Middlebrooks immediately remanded Butler into custody at the United States’ request.
As charged in the indictment, Butler submitted altered and fake invoices to US Navy and Coast Guard ships through the SEA Card Program, which allows US vessels to purchase critical fuel to conduct military operations around the world.
According to the evidence at trial, Butler, the owner of Independent Marine Oil Services, submitted dozens of falsified documents such as wire transfer memos and invoices to multiple US warships, including the mine countermeasures vessel USS Patriot (pictured), between August 2022 and January 2024.
The US Department of Justice (DOJ) said these ships were attempting to purchase fuel in international ports in countries such as Saudi Arabia, Singapore, and Croatia to defend strategic American interests around the globe.
Butler received over US$4.5 million in payments for phony expenses that he had not incurred.
After Butler came under scrutiny by navy officials, he continued his scheme by concealing his identity from government officials. He adopted a false name and feigned employment by a fictitious fuel division of a different company.
The DOJ said Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple multi-million dollar properties in Florida and Colorado.
“This defendant brazenly defrauded the US military out of millions of dollars and put critical fuel resources at risk, all to fund his cushy and fictitious lifestyle,” said Attorney General Pamela Bondi. “The Department of Justice will continue to uncover these schemes and bring perpetrators to justice to protect the American people and their tax dollars.”
"Mr Butler exploited the integrity of the SEA Card Program — a vital logistical capability that enables the US Navy to conduct rapid, global refueling operations and sustain mission readiness," said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office.
NCIS was one of three federal agencies that investigated the case.
"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," Gross continued.
Sentencing is set for April 8, 2026. 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 US Sentencing Guidelines and other statutory factors.
