A former US Army financial counselor has pleaded guilty to defrauding grieving military families of millions of dollars in life insurance payments. Caz Craffy, 41, from Colts Neck, New Jersey, admitted to all ten charges against him, which included securities and wire fraud, and making false statements. The victims of his alleged scam include a teenage girl whose father died, as well as a handful of military widows.
According to prosecutors, Craffy scammed members of at least 24 Gold Star families from 2018 to 2022, convincing them to transfer nearly $10 million of their survivor benefits into private brokerage accounts under his control. He conducted over 1,000 unauthorized trades, resulting in losses of $3.4 million and generating $1.4 million in commissions that he pocketed himself.
It is a heart-wrenching situation for the families who have lost their loved ones on active duty and are now facing financial fraud on top of their grieving. The victims were under the impression that Craffy was authorized by the Army to handle their financial affairs, but in reality, he was a civilian employee. He enlisted in the US Army Reserve in 2003 and may face further punishment through the military justice system.
One of the victims, a military widow, had nearly two-thirds of her $400,000 investment account drained by Craffy. This money was meant to fund her children’s college education and her aging mother’s care. Another victim, a 13-year-old girl, had $50,000 stolen from her retirement account. These are just a couple of examples of the many families who have fallen victim to Craffy’s deceitful acts.
Craffy’s plea was entered in front of US District Judge Georgette Castner in Trenton, New Jersey. He is due to be sentenced on August 21 and could face up to 10 years in prison, according to recommended federal guidelines. He has also agreed to pay back his victims using funds acquired from selling his home. Under the plea deal, Craffy cannot appeal any sentence that falls within the recommended range.
In the wake of the discovery of the fraud, Gold Star mom Sharon Hartz expressed her shock and disgust, stating, “It’s unimaginable. He disrespected me. He disrespected my son. My family.” Craffy’s job as a financial counselor was meant to provide basic guidance to Army families facing the loss of a family member. Instead, he took advantage of their vulnerable state and stole from them.
The incident has sparked concerns and calls for stricter oversight of financial counselors employed by the Department of Defense. A new law has been enacted, requiring these counselors to submit records annually confirming that they have no conflicts of interest and will not benefit improperly from their position.
This was in response to the outrage and determination of Natasha Bevard, whose husband, Rodney C. Bevard, died by suicide in 2020 after a long military career. She has committed to ensuring that no other Gold Star family falls victim to financial exploitation at their most vulnerable time.
In the end, while Craffy may have to face the consequences of his actions, it is the Gold Star families who have suffered the most. No amount of punishment can undo the loss and heartache they have endured, but the Justice Department remains committed to holding those who deceive and harm Gold Star families accountable for their crimes. As Attorney General Merrick Garland stated, “Those who target and steal from the families of fallen American servicemembers will be held accountable for their crimes.”
