On 16 April, Caz Craffy, a US Army civilian employee (DAC) and Major in the US Army Reserve, pleaded guilty to bilking millions of dollars from Gold Star families. From May 2018 to Nov 2022, he obtained over $9.9 million from victims who received a $100,000 death benefit and a soldier’s life insurance policy, some valued up to $400,000.
Craffy convinced the bereaved families to invest in accounts which he managed privately. While the Gold Star families lost more than $3.4 million on his investments, Craffey made unauthorized trades raking in over $1.4 million in commissions for himself. US Army CIDC, the FBI, DCIS, and HSI Newark investigated the case, along with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The investigation appears to have been thorough, costly, and time-consuming.
“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,” said US Attorney Philip R. Sellinger for the District of New Jersey.
Caz Craffy faces a lengthy prison term and a dizzying array of fines, penalties, and restitution costs, which will be calculated by the Justice Dept and the SEC. US District Judge Georgette Castner, a President Biden nominated jurist, sentences the defendant in Trenton, NJ on 21 Aug 2024.
Sources: www.justice.gov/… newjerseyglobe.com/...