Florida Business Owner Charged with Defrauding U.S. Department of Defense and Federal Agencies through SEA Card Program

Strategic Insights -

A federal grand jury in Miami has returned an indictment against Jasen Butler, 37, of Jupiter, Florida, charging him with multiple counts of wire fraud, money laundering, and forgery for orchestrating a scheme to defraud the U.S. Department of Defense and other federal agencies through the SEA Card Program. Between August 2022 and January 2024, Butler submitted dozens of falsified documents to U.S. warships, including the USS Patriot, demanding and receiving over $5 million dollars in payments for phony expenses. Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado.

Key Takeaways:

  • Jasen Butler, owner of Independent Marine Oil Services LLC, submitted falsified documents to U.S. warships, including the USS Patriot, to defraud the U.S. Department of Defense and other federal agencies through the SEA Card Program.
  • Between August 2022 and January 2024, Butler demanded and received over $5 million dollars in payments for phony expenses.
  • The SEA Card Program allows U.S. vessels to purchase critical fuel from suppliers at ports around the world, including in Saudi Arabia, Singapore, and Croatia.
  • Butler used a false name and feigned employment by a fictitious fuel division of a different company to conceal his identity from government officials.
  • Butler's allegations involve using the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado.
  • The Antitrust Division, in collaboration with the Procurement Collusion Strike Force, is investigating this case and working to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding.
  • The Coastal Guard Investigative Service (CGIS) Southeast Field Office, the Naval Criminal Investigative Service (NCIS), and the Coast Guard's supply chain are also working to investigate and ensure the integrity of the supply chain.

Statistics:

  • $5 million: The amount of payments received by Butler for phony expenses submitted to U.S. warships between August 2022 and January 2024.
  • 20 years in prison: The maximum penalty for each count of wire fraud, if convicted.
  • 10 years in prison: The maximum penalty for each count of forgery and money laundering, if convicted.
  • The Justice Department created the PCSF in November 2019, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government.
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Sources:

  • A news release issued by the United States Department of Justice Antitrust Division
  • Court documents filed in the Southern District of Florida
  • The Justice Department's website at www.justice.gov/procurement-collusion-strike-force