CRIME
US Army Financial Counselor Pleads Guilty To Defrauding Gold Star Families
U.S. Army
A financial counselor for the U.S. Army on Tuesday pleaded guilty to charges related to defrauding Gold Star families, the moniker given to families who lost a member as a result of their active-duty military service.
Caz Craffy, a.k.a. “Carz Craffey,” a 41-year-old major in the U.S. Army Reserves, pleaded guilty in federal court on Tuesday to six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency, according to the U.S. Attorney’s Office for the District of New Jersey.
“Those who target and steal from the families of fallen American service members will be held accountable for their crimes,” Attorney General Merrick B. Garland said in a statement. “Nothing can undo the enormous loss that Gold Star families have suffered, but the Justice Department is committed to doing everything in our power to protect them from further harm.”
Craffy served as a civilian financial counselor in the Army’s Casualty Assistance Office from November 2017 to January 2023, assisting surviving beneficiaries after their family members died during active duty. The beneficiaries are entitled to a $100,000 payment and the service members life insurance of up to $400,000.
Craffy admitted using his position to target Gold Star families and other military families, encouraging them to invest their benefits in accounts he managed in his outside, private employment. The vast majority of the families were falsely led to believe that Craffys management of their money was done on behalf of and with the Armys authorization.
From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest, and executed trades in his private capacity, often without the family’s authorization. During that time, the Gold Star family accounts lost more than $3.7 million, even as Craffy earned more than $1.4 million in commissions on the trades.
Caz Craffy admitted today that he brazenly took advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, using lies and deception. These Gold Star families have laid the dearest sacrifice on the altar of freedom. And they deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation, said U.S. Attorney Philip R. Sellinger. We will use every means at our disposal to ensure that those who defraud our military families are held accountable. Caz Craffy now faces the prospect of years in prison for ripping off these families to line his own pocket.
The six counts of wire fraud and one count of securities fraud each carry maximum sentences of 20 years in prison, while the remaining counts each carry maximum penalties of 2–5 years in prison. The securities fraud charge carries a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest. All other counts carry maximum fines of $250,000 or twice the gain or loss from the offense, whichever is greatest.
Craffy’s sentencing is scheduled for Aug. 21.
TMX contributed to this article.
