Former Counselor Pleads Guilty to Defrauding Grieving Families of Millions
A former financial counselor with the U.S. Army has admitted to defrauding Gold Star families out of millions of dollars in life insurance payouts, according to the Department of Justice (DOJ) on Tuesday.
Breaching Trust: Counselor Targeted Vulnerable Families
New Jersey resident Caz Craffy, 41, pleaded guilty to six counts of wire fraud and other charges. Craffy, entrusted with providing financial guidance to Gold Star families who had lost loved ones in service, exploited their vulnerability for personal gain. Court documents reveal Craffy used his position to specifically target these families from November 2017 to January 2023.
DOJ Vows to Protect Military Families
“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,” said Attorney General Merrick Garland in a statement.
Millions Lost, Trust Broken
Craffy’s scheme ran from May 2018 to November 2022, defrauding families of over $9.9 million. He used the funds for unauthorized trades, generating significant commissions for himself. Gold Star families lost more than $3.7 million, while Craffy pocketed over $1.4 million in commissions.
Craffy Faces Sentencing
“Craffy disgraced his entrusted position to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Acting Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) Newark.
Craffy entered his plea before U.S. District Judge Georgette Castner in Trenton, New Jersey, and is scheduled for sentencing on August 21.
