JUPITER, Fla. — A South Florida business owner is facing serious federal charges for allegedly defrauding the U.S. Navy out of more than $5 million by billing for fuel deliveries that never occurred — including to warships.
Jasen Butler, 37, of Jupiter, has been indicted by a federal grand jury in Miami on multiple counts of wire fraud, money laundering, and forgery, according to the U.S. Department of Justice (DOJ).
Butler owns Independent Marine Oil Services LLC, and is accused of orchestrating a scheme between August 2022 and January 2024 by submitting dozens of falsified invoices through the SEA Card Program — a fuel payment system used by U.S. Navy vessels and other federal agencies.
Fake Fuel, Real Charges
According to court documents, Butler allegedly billed for fuel deliveries to U.S. Navy ships, including the USS Patriot, which never happened. He reportedly used fake identities and fictitious business divisions to mask the fraud. The proceeds, investigators say, were used to buy property in Florida and Colorado.
Federal prosecutors say the fraud directly undermined military readiness and exploited a program essential for supporting U.S. defense operations globally.
“Such fraud jeopardizes the dedicated service members who selflessly defend our country,” said U.S. Attorney Hayden P. O’Byrne of the Southern District of Florida.
Assistant Attorney General Abigail A. Slater added, “The Antitrust Division and Procurement Collusion Strike Force will not rest until those who defraud the military and taxpayers face justice.”
Potential Penalties
If convicted, Butler faces:
Up to 20 years per count of wire fraud
Up to 10 years per count of forgery and money laundering
Broader Investigation
This indictment is part of a wider crackdown by the Procurement Collusion Strike Force (PCSF) — a DOJ-led initiative targeting fraud and antitrust violations in federal contracting. The public is urged to report related schemes on the Justice Department’s PCSF website.
