A Florida businessman who claimed to fuel U.S. warships around the world has been convicted on 34 felony counts after orchestrating a brazen $4.5 million fraud scheme against the Department of Defense that funded a lavish lifestyle built entirely on lies.
Jason Butler, 37, of Jupiter, Florida, was found guilty by a federal jury in West Palm Beach of wire fraud, money laundering, and forgery for submitting falsified invoices through the military’s SEA Card Program, according to court documents. The owner of Independent Marine Oil Services LLC fabricated fuel deliveries to U.S. Navy vessels including the USS Patriot in ports from Saudi Arabia to Singapore between August 2022 and January 2024.
“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,” said Attorney General Pamela Bondi in a statement following the verdict.
From Fictitious Fuel to Luxury Real Estate
Butler’s scheme began to unravel when authorities discovered he was collecting payments for fuel that was never delivered to military vessels. As investigators closed in, Butler attempted to cover his tracks by assuming a false identity and creating fictitious employment records.
Where did the millions go? Court records show Butler splurged on multi-million dollar properties in Florida and Colorado. “The defendant — a convicted felon — defrauded his own country in order to unjustly line his own pockets,” said Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division.
The case highlights vulnerabilities in the Defense Department’s procurement system, particularly the SEA Card Program, which is designed to streamline fuel purchases for Navy vessels operating globally. Instead of facilitating legitimate transactions, Butler exploited the program to submit fraudulent invoices for fuel that was never delivered to ships in ports across Croatia, Saudi Arabia, and Singapore.
Joint Investigation Brings Results
How did they catch him? The conviction resulted from a joint investigation by the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service as part of the Procurement Collusion Strike Force (PCSF).
“The Coast Guard Investigative Service is pleased with the jury’s verdict in this case, which sends a strong message that fraud against our military and the American taxpayer will not be tolerated,” said Acting Assistant Director Josh Packer of the Coast Guard Investigative Service.
Butler’s conviction is just the latest success for the PCSF, which was established in November 2019 to combat antitrust crimes and fraudulent schemes targeting government procurement. The strike force brings together investigators and prosecutors from multiple agencies to protect taxpayer dollars and military readiness.
“The guilty verdict in this case is a direct result of our commitment to safeguarding the Department of Defense’s critical supply chain,” said Special Agent in Charge Jason J. Sargenski of the DCIS Southeast Field Office.
Serious Consequences Ahead
Butler’s sentencing is scheduled for April 8, 2026. The penalties could be severe — up to 20 years in prison for each wire fraud count and an additional 10 years for each forgery and money laundering count. With 34 felony convictions, Butler potentially faces decades behind bars.
The case originated from Butler’s June 2025 indictment on similar charges involving more than $5 million in falsified SEA Card invoices to Navy ships. The Department of Justice confirmed the charges in a press release at that time.
Officials emphasize that whistleblowers who report similar schemes may be eligible for substantial rewards if their reports lead to recoveries of at least $1 million — a reminder that the government is increasingly relying on insider information to combat procurement fraud.
“Those who profit from illicit schemes that defraud the American people and place our warfighters and national security at risk will be held accountable,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service Economic Crimes Field Office. For Butler, that accountability now looms large as he awaits sentencing in a case that has exposed the vulnerability of military supply chains to sophisticated fraud schemes.
