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Fuel Executive Sentenced for Military Contract Fraud

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Photo: Photo by XT7 Core on Unsplash

Jasen Butler, owner of Independent Marine Oil Services LLC, has been sentenced to five years in prison for defrauding the U.S. military in a contract bid scam, involving falsified documents and over $4.5 million in fraudulent payments.

07.04.2026 | Department of Justice


Jasen Butler, a 38-year-old from Jupiter, Florida, was sentenced to 60 months in prison for his role in a fraudulent scheme targeting U.S. military fuel contracts. Convicted on 34 counts including wire fraud and money laundering, Butler's actions involved submitting fake documents to secure payments for non-existent expenses.

Between August 2022 and January 2024, Butler exploited the competitive bidding process, submitting falsified invoices and wire transfer memos to multiple U.S. warships. He received over $4.5 million for these fraudulent claims, which he used to enrich himself and purchase luxury properties in Florida and Colorado.

Despite scrutiny from Navy officials, Butler continued his fraudulent activities by adopting a false identity and pretending to work for a fictitious fuel division. His actions were described as a calculated scheme that undermined military operations and defrauded taxpayers.

Acting Attorney General Todd Blanche emphasized the seriousness of the crime, stating that the administration is committed to holding accountable those who defraud the military. The Justice Department's Antitrust Division, along with other investigative agencies, is dedicated to combating such fraudulent schemes.

The case was part of the Justice Department’s Procurement Collusion Strike Force, which aims to address antitrust crimes affecting government procurement. The sentencing serves as a warning to others who might consider exploiting government systems for personal gain.

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