Florida Fuel Supplier Convicted of 34 Felonies in $4.5 Million Military Fuel Fraud

Overview

• A federal jury in West Palm Beach found Jason Butler, 37, of Jupiter, Florida, guilty on 34 counts, and U.S. District Judge Donald M. Middlebrooks remanded him into custody.
• Prosecutors said Butler used falsified invoices and wire-memo documents to bill U.S. Navy and Coast Guard ships through the SEA Card Program for fuel expenses that were never incurred.
• The scheme ran from August 2022 to January 2024 and targeted vessels purchasing fuel in foreign ports including Saudi Arabia, Singapore, and Croatia, generating more than $4.5 million in payments.
• After scrutiny by Navy officials, Butler concealed his identity by adopting a false name and pretending to work for a fictitious fuel division to keep the fraud going.
• Investigators from CGIS, DCIS, and NCIS worked the case under DOJ’s Procurement Collusion Strike Force, and Butler faces maximum penalties of up to 20 years per wire fraud count and up to 10 years for each forgery and money laundering count.