Florida Business Owner Indicted in $5 Million Money Laundering & Procurement Fraud Case

A Florida businessman has been indicted by a federal grand jury for orchestrating a multimillion-dollar money laundering and procurement fraud scheme targeting the United States Department of Defense. The case highlights a growing concern over fraud and illicit financial flows within military procurement systems and underscores the urgent need for tighter anti-money laundering (AML) controls across high-risk sectors.

False Invoicing & Money Laundering Through the SEA Card Programme

Jasen Butler, 37, of Jupiter, Florida, allegedly laundered over $5 million through a fraudulent scheme that manipulated the SEA Card Programme — a system used by US Navy vessels to purchase fuel from authorised global suppliers. Butler, acting through his company Independent Marine Oil Services LLC, submitted falsified invoices for phantom fuel transactions at ports in Saudi Arabia, Singapore, Croatia and other international locations between August 2022 and January 2024.

He is accused of using these fabricated expenses to obtain fraudulent reimbursements, then laundering the funds into personal real estate purchases and luxury assets in Florida and Colorado. Prosecutors allege Butler obscured the origin of these illicit funds by posing as an employee of a fictitious company division, using false identities and doctored documentation to avoid detection.

Money Laundering Risks in Defence Supply Chains

This case brings renewed attention to the money laundering risks embedded in government procurement, particularly in supply chains involving cross-border transactions, fuel trading, and high-value contracts. It also reveals how fraudsters exploit gaps in supplier due diligence, payment verification, and beneficial ownership transparency to integrate illicit funds into the legitimate economy.

The SEA Card Programme, while designed to enable operational efficiency for deployed naval vessels, has now been exposed as vulnerable to exploitation. The indictment raises questions about the effectiveness of internal controls, AML screening, and financial oversight mechanisms within defence fuel procurement operations.

AML Enforcement & Deterrence in Government Fraud Cases

If convicted, Butler faces up to 20 years in prison for each wire fraud count, and up to 10 years for each count of money laundering and forgery. The case is being investigated by the Naval Criminal Investigative Service (NCIS) and the Coast Guard Investigative Service (CGIS), and prosecuted by the Justice Department’s Antitrust Division under the Procurement Collusion Strike Force (PCSF).

This high-profile indictment reinforces the US government's commitment to prosecuting complex fraud and money laundering cases that affect national security and taxpayer funds. It also serves as a cautionary tale for companies operating in sensitive sectors: robust AML compliance, transaction monitoring, and fraud prevention protocols are essential to guard against reputational and criminal risk.

Read the press release here.