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A federal jury in West Palm Beach has convicted Jason Butler, 37, of Jupiter, Florida, of 34 felony counts for defrauding the U.S. Department of War and other federal agencies of over $4.5 million.
Butler, owner of Independent Marine Oil Services LLC, was found guilty of wire fraud, money laundering, and forgery. U.S. District Judge Donald M. Middlebrooks ordered him taken into custody immediately at the request of the government.
Court evidence showed that Butler submitted fake and altered invoices through the SEA Card Program, which allows U.S. Navy and Coast Guard ships to buy fuel for military operations worldwide.
Between August 2022 and January 2024, he sent falsified wire transfer memos and invoices to several warships, including the USS Patriot, claiming fuel purchases in ports like Saudi Arabia, Singapore, and Croatia.
In reality, the fuel had not been purchased, yet Butler received more than $4.5 million in payments.
When Navy officials began investigating, Butler tried to continue the scheme under a false identity, claiming to work for a fake fuel division of another company.
Attorney General Pamela Bondi described Butler’s actions as a deliberate attempt to cheat the U.S. military and risk critical fuel resources.
Deputy Assistant Attorney General Omeed A. Assefi said Butler “defrauded his own country to line his pockets,” but a jury of his peers found him guilty of all charges.
U.S. Attorney Jason A. Reding Quiñones said the fraud put military operations and taxpayer funds at risk and warned that such schemes would face serious consequences.
Acting Assistant Director Josh Packer of the Coast Guard Investigative Service said the verdict sends a message that fraud against the military will not be tolerated.
Special Agent Jason J. Sargenski of the Defence Criminal Investigative Service said the scheme threatened a supply chain essential for global military operations, and NCIS Special Agent Greg Gross said Butler exploited the SEA Card Program, a vital tool for refuelling and mission readiness.
Butler is scheduled to be sentenced on 8 April 2026. He faces up to 20 years in prison for each wire fraud count, and up to 10 years for each forgery and money laundering count.
A federal judge will set the final sentence following U.S. Sentencing Guidelines.
Reference: US DOJ
Source: Maritime Shipping News