Former US Army Financial Counselor Pleads Guilty to Defrauding Gold Star Families
A former financial counselor with the US Army has pleaded guilty to defrauding grieving Gold Star families out of millions of dollars worth of life insurance payments, the Department of Justice said Tuesday. New Jersey resident Caz Craffy, 41, pleaded guilty to multiple counts including wire fraud and securities fraud.
Craffy could face 8 to 10 years in prison according to federal guidelines and has agreed to make full restitution to the victims.
During his time as a financial counselor, Craffy targeted Gold Star families who are entitled to life insurance payments when a member of the armed forces dies during active duty. He abused his position to cheat these vulnerable families out of over $9.9 million.
“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.
Craffy misled families into investing in accounts he managed outside of his Army duties, resulting in significant losses for the Gold Star families while he earned high commissions. He is scheduled to be sentenced on August 21 by US District Judge Georgette Castner in Trenton, New Jersey.
