A former financial counselor with the US Army, Caz Craffy, has pleaded guilty to defrauding Gold Star families out of millions of dollars worth of life insurance payments, according to the Department of Justice. He pleaded guilty to several counts including wire fraud, securities fraud, and making false statements in a loan application. If found guilty, he could face 8 to 10 years in prison as per federal guidelines. Craffy has agreed not to appeal a sentence within that range and to make full restitution to his victims.
Gold Star families, who are the surviving beneficiaries of deceased members of the armed forces, are entitled to a $100,000 payment and the deceased service member’s life insurance up to $400,000. From November 2017 to January 2023, Craffy was responsible for providing financial education to Gold Star families but instead targeted them for fraud. He abused his position to encourage families to invest in accounts he managed outside of his Army work, leading to over $9.9 million being stolen from beneficiaries.
Craffy was an employee of the Army working as a financial counselor with the Casualty Assistance Office and was also a major in the Army Reserve. Despite being prohibited from offering personal opinions on beneficiaries’ money or having a financial interest in government matters, he exploited his trust. He falsely advised Gold Star families to invest in accounts that he managed with other financial investment firms, misleading them into thinking it was authorized by the Army.
Over the span of May 2018 to November 2022, Craffy defrauded Gold Star families out of $9.9 million, using the money for unauthorized trades and earning high commissions for himself. The families lost over $3.7 million from their accounts, while Craffy made over $1.4 million in commissions. His actions have been condemned by the Justice Department, which is committed to protecting Gold Star families from further harm and ensuring justice is served for those who exploit vulnerable individuals during times of grief.
Acting Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) Newark stated that Craffy abused his position of trust to take advantage of vulnerable Gold Star families during times of mourning. Despite the irreversible loss these families have suffered, the Justice Department is focused on preventing further harm to these individuals. Craffy entered his guilty plea before US District Judge Georgette Castner in Trenton, New Jersey, and is set to be sentenced on August 21. If the recommended federal guidelines are followed, he could face 8 to 10 years in prison for his crimes and has agreed not to appeal within that range.
