Florida Fuel Contractor Convicted in $4.5M Fraud Targeting Navy, Coast Guard
A Florida businessman whose company provided fuel to U.S. Navy and Coast Guard ships was convicted of bilking the federal government out of $4.5 million in a massive fraud scheme.
Jasen Butler was convicted of 34 felonies including wire fraud, money laundering, and forgery by a federal jury in West Palm Beach.
Butler was the owner of Independent Marine Oil Services and was under contract to supply fuel to U.S. warships.
According to prosecutors, Butler submitted altered invoices to the U.S. Navy and Coast Guard, receiving over $4.5 million in payments for fuel that was not delivered. The invoices were submitted through the SEA Card Program, which allows U.S. ships to purchase fuel to conduct military operations around the world.
"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.
According to court documents, the scheme started in August 2022 with Butler submitting dozens of falsified documents including wire transfer memos and invoices to multiple US warships.
After Navy officials became suspicious, Butler allegedly created a false identity and faked employment with a different company to continue the scheme.
The indictment lists incidents involving the minesweeper USS Patriot, the Arleigh-Burke class guided missile destroyer USS Thomas Hudner, the USNS Puerto Rico, and the Coast Guard cutter Douglas Denman.
“This defendant didn’t just commit fraud, he betrayed the trust placed in those who support our nation’s warfighters,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “By falsifying invoices and siphoning millions from a program designed to keep U.S. military vessels operational around the world, he put critical missions and taxpayer dollars at risk.”
Butler was remanded into custody after the verdict. He will be sentenced in April 2026 and faces maximum penalties of 20 years in prison for each count for wire fraud, up to ten years for each count of forgery, and up to ten years for each count of money laundering.
The case was investigated by the Coast Guard Investigative Service (CGIS), the Defense Criminal Investigative Service (DCIS), and the Naval Criminal Investigative Service (NCIS) as part of the Department of Justice’s Procurement Collusion Strike Force.