A 38-year-old Jupiter, Florida man is going to federal prison after pulling off one of the more brazen military fraud schemes in recent memory: he billed the U.S. Navy for fuel it never received, using forged documents, fabricated wire transfers, and at one point, an entirely made-up identity. The scheme ran for nearly a year and a half, and by the time it was over, Jasen Butler had pocketed more than $4.5 million in stolen military funds.
On Thursday, April 9, 2026, U.S. District Judge Donald M. Middlebrooks sentenced Butler to five years in federal prison. The charges included wire fraud, forgery, and money laundering. What Butler spent that stolen money on is now also gone: the judge ordered the forfeiture of multiple high-value properties in Florida and Colorado that Butler had purchased with the illicit proceeds.
The case is a reminder that threats to national security do not always come from foreign actors or cyberattacks. Sometimes, they come from a guy in Jupiter with a printer and a very creative approach to invoicing.
How the Scheme Worked
Butler owned a company called Independent Martin Oil Services LLC, which he used to insert himself into the military’s fuel procurement process. Between August 2022 and January 2024, U.S. Navy warships operating in international ports needed to purchase fuel, and Butler’s company swooped in with bids and paperwork, none of which were legitimate.
He submitted dozens of falsified documents including tampered invoices, fraudulent wire transfer memos, and forged contracts, all designed to look like real fuel transactions. The ships paid. Butler pocketed the money. No fuel was ever legitimately provided through his fraudulent invoices.
When investigators began closing in and scrutiny of his company intensified, Butler did not stop. He simply changed his approach. He hid his identity and began representing himself as an employee of a fuel division at another company, except that division did not exist. He had invented it. The scheme continued until authorities finally caught up with him and the full scope of the fraud was exposed.
What Officials Had to Say
Acting Attorney General Todd Blanche did not mince words when addressing the case after sentencing. He described the fraud as a theft carried out with a fake job, a fake identity, and fake invoices, and made clear that the current administration views fraud against the military as a serious federal offense. The five-year sentence, he said, reflects just how seriously the government takes that position.
It is worth noting that defrauding the U.S. military is not just a financial crime. Military procurement systems exist for a reason: to make sure ships, troops, and operations have what they need to function. When someone siphons millions of dollars out of that system through forgery, it is not just theft. It is a disruption of the logistics that keep the armed forces operational.
What Happens to the Money and Properties
Butler will not be walking out of prison with his real estate portfolio intact. Judge Middlebrooks ordered the forfeiture of several properties in both Florida and Colorado, all of which were purchased with stolen funds. Whether those properties will be liquidated to partially reimburse the government or held in another capacity has not been publicly detailed, but they are no longer Butler’s to keep.
The case is also likely to prompt a closer look at how the military vets fuel service contractors, particularly in international ports where oversight can be more difficult and the pressure to refuel quickly can create openings for bad actors. Butler’s scheme lasted for nearly 18 months before it was shut down, which raises fair questions about how long gaps like that should be allowed to persist in a system handling billions of dollars in procurement annually.
For now, Butler is headed to prison, and the Navy has one fewer fake fuel vendor to worry about.