In a case that highlights the threat of procurement fraud against the military, a Florida fuel supplier has been slapped with serious charges for running a scheme defrauding the U.S. Department of Defense. Jasen Butler, the owner of Independent Marine Oil Services LLC, was indicted by a federal grand jury for wire fraud, money laundering, and forgery, as the U.S. Attorney's Office for the Southern District of Florida reported.
This elaborate scheme, executed between August 2022 and January 2024, involved Butler submitting falsified invoices to the U.S. Navy and pocketing over $5 million as a result, the Navy ships, including the USS Patriot, were ostensibly obtaining fuel from international ports, such as Saudi Arabia, Singapore, and Croatia where Butler feigned employment by a non-existent division of another company and used a false name in his illicit transactions.
Addressing the seriousness of such crimes, U.S. Attorney Hayden P. O’Byrne emphasized “Our office is steadfast in its commitment to prosecute individuals that seek to unjustly profit at the expense of the U.S. military.” Such fraud undermines military readiness and jeopardizes the dedicated service members who selflessly defend our country. The indictment also showcases the ongoing efforts by the Antitrust Division and its Procurement Collusion Strike Force, which was established under the prior administration to target crimes affecting government procurement, according to the same press release.
In their pursuit of justice, various agencies including the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service collaborated on this investigation, which resulted in the successful identification and charging of Butler who, if convicted, faces maximum penalties that amount to decades behind bars for these multi-faceted crimes, the agencies involved express a firm commitment to upholding the integrity of the military's supply chain and protecting taxpayer interests against such fraudulent activities.
Prosecutors are handing the case with an air of determination, Assistant Chief Sara Clingan and Trial Attorney Jonathan Pomeranz of the Antitrust Division’s Washington Criminal Section leading the court proceedings. Meanwhile, the Justice Department maintains a vigilant stance, inviting anyone with insights on this or similar schemes involving procurement fraud to come forward and aid in maintaining the fairness and honesty of government funding and procurement.
