A shocking case has come to light involving a United States Army financial counselor who stands accused of deceiving the families of fallen soldiers and profiting millions for himself through a fraudulent life insurance scheme.
According to the U.S. Department of Justice, Caz Craffy, also known as Carz Craffey, has pleaded guilty to multiple charges including wire fraud, securities fraud, making false statements in a loan application, and other criminal offenses. The 41-year-old from Colts Neck, New Jersey is set to be sentenced in district court on Aug. 21, facing a maximum penalty of 20 years in prison for each count of wire and securities fraud, and five years for the remaining charges. Additionally, Craffy may be required to pay fines up to $7 million, double the amount lost by his victims in the scam, for all but one of the counts.
Craffy's time in the Army spanned from November 2017 to January 2023, during which he worked as a financial counselor in the Casualty Assistance Office. His main responsibility was to educate the surviving beneficiaries of soldiers killed in action about their financial options, with some eligible for up to $500,000 from the military. Alongside this role, Craffy also held the rank of major in the U.S. Army Reserves.
Despite being prohibited from offering personal advice to beneficiaries as a military financial counselor, known as Gold Star families, Craffy ran a private investment firm in secret. He advised these families to invest their survivor benefits in accounts he managed without Army authorization.
Many families believed Craffy's guidance was approved by the military, but he actually directed over $9.9 million of their benefits into accounts where he made unauthorized trades, earning commissions that did not align with the families' best interests. The Gold Star families suffered losses exceeding $3.7 million, while Craffy pocketed over $1.4 million in commissions. These actions were acknowledged in his guilty plea, as confirmed by the Justice Department.
Man Charged with Scamming 20 Gold Star Families
A man known as Craffy has been accused of deceiving 20 Gold Star military families, as reported by CBS New York. The indictment was made last July, and the families were allegedly defrauded in a scam.
