In a high-stakes world where military readiness depends on a global supply chain, the integrity of government contracts isn't just a matter of paperwork—it's a matter of national security. The recent conviction of Jason Butler, a Florida fuel supplier, serves as a stark warning about the legal and personal consequences of defrauding the U.S. government.
Here is a breakdown of the law behind the scheme and what it means for those who attempt to "game the system."
The Law: Breaking Down the Charges
Butler was convicted of 34 felonies across three major categories. Here is the legal framework the government used to secure that verdict:
Wire Fraud (18 U.S.C. § 1343): This is the "bread and butter" of federal fraud cases. To win, prosecutors had to prove Butler used electronic communications (like the SEA Card portal or email) to execute a scheme to cheat the government. Every single fake invoice sent via the internet counted as a separate count of wire fraud.
Money Laundering (18 U.S.C. § 1956): Because Butler used the "dirty" money from his fraud to buy multi-million dollar properties in Florida and Colorado, he was charged with money laundering. This law targets the act of taking proceeds from a crime and using them in financial transactions to hide their origin or further enrich the criminal.
Forgery: This involved the creation of fake wire transfer memos and invoices. By altering documents to make them look like legitimate business expenses, Butler violated federal laws designed to protect the authenticity of financial records used in government procurement.
The Scheme: Exploiting the "SEA Card"
Butler’s company, Independent Marine Oil Services LLC, utilized the SEA Card Program, which warships use like a credit card to buy fuel in foreign ports. Butler didn't just overcharge for fuel; he created fictitious "cancellation fees."
In one instance, just two hours after a contract was awarded for a ship in Croatia, the ship’s mission changed. Butler allegedly fabricated documents to charge a $557,265 cancellation fee for costs he never actually incurred. When the Navy grew suspicious, he didn't stop—he created a fake identity, "Adam Ogden," to keep the money flowing.
The Consequences: More Than Just a Fine
The legal system treats fraud against the military with extreme severity because it siphons resources away from "warfighters" and national defense.
Massive Prison Time: Butler faces up to 20 years for each count of wire fraud. Given that he was convicted of 34 felonies, his sentencing on April 8, 2026, could result in a decades-long prison term.
Asset Forfeiture: The government doesn't just put you in jail; they take back what you bought. The multi-million dollar homes Butler purchased are subject to seizure to repay the $4.5 million stolen from taxpayers.
Permanent Blacklisting: Beyond prison, a conviction like this leads to Debarment. Butler and his company will be permanently barred from ever doing business with the federal government again.
The "Strike Force" Factor: This case was handled by the Procurement Collusion Strike Force (PCSF). Their involvement signals that the DOJ is using sophisticated data analytics to find "red flags" in government bidding that would have gone unnoticed ten years ago.
The Bottom Line
Whether it’s the sale of bad loans on a secondary market or fake fuel invoices in a foreign port, the theme is the same: deception eventually catches up to the deceiver. In the eyes of the law, defrauding the "Department of War" is not just a white-collar crime—it's an affront to the country's safety.
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