Current:Home > FinanceFormer Army financial counselor gets over 12 years for defrauding Gold Star families -Profound Wealth Insights
Former Army financial counselor gets over 12 years for defrauding Gold Star families
View
Date:2025-04-21 00:32:43
A former U.S. Army financial counselor has been sentenced to more than 12 years in prison after admitting he defrauded families of fallen soldiers out of millions of dollars through a life insurance scheme, the U.S. Attorney's Office said.
Caz Craffy, 42, of Colts Neck, New Jersey, was sentenced to 151 months in prison after pleading guilty in April to six counts of wire fraud and other criminal charges, including securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest and making false statements to a federal agency.
Craffy was a civilian employee for the Army from November 2017 to January 2023 and was a financial counselor with the Casualty Assistance Office, according to the U.S. Attorney's Office for the District of New Jersey. Prosecutors said Craffy was responsible for providing general financial education to the surviving beneficiaries of servicemembers killed while on active duty.
Surviving beneficiaries − known as Gold Star families − are entitled to a $100,000 payment and up to $400,000 from the servicemember’s life insurance, which is disbursed over the weeks or months following the servicemember’s death. Prosecutors said Craffy used his position to target Gold Star families and other military families, cheating them out of millions of dollars.
In addition to the prison term, Craffy was sentenced to three years of supervised release and ordered forfeiture of $1.4 million, according to the U.S. Attorney's Office.
'So egregious':Colorado funeral home owners accused of mishandling 190 bodies ordered to pay $950M
"Caz Craffy was sentenced to prison today for brazenly taking advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, when they were dealing with a tragedy born out of their loved one’s patriotism," U.S. Attorney Philip R. Sellinger said in a statement.
"These Gold Star families have laid the dearest sacrifice on the altar of freedom. And they deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation," Sellinger added. "No amount of money can undo their enormous loss. Instead of offering guidance, Caz Craffy chose to defraud these heroic families."
Former U.S. Army financial counselor obtained more than $9.9M for trading
According to court documents, Craffy was prohibited as a military financial counselor from providing any personal opinions to beneficiaries. But while working for the Army, Craffy also had outside employment with two separate financial investment firms, court documents revealed.
Craffy admitted he encouraged Gold Star families to invest their benefits into accounts he managed without notifying the Army, prosecutors said.
"Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization," according to the U.S. Attorney's Office.
Prosecutors said Craffy directed more than $9.9 million from Gold Star families in accounts managed by him in his private capacity from May 2018 to November 2022. Craffy then used the money to make trades without the family's consent.
Craffy earned high commissions from these unauthorized trades, according to the U.S. Attorney's Office. Court documents showed that Gold Star families lost more than $3.7 million in the scheme, while Craffy received more than $1.4 million in commissions.
"The money these survivors are given does nothing to ease their suffering. It does, however, help with the burdens they face, such as paying off a mortgage or putting their children through college," FBI-Newark Special Agent in Charge James E. Dennehy said in a statement. "They believed Craffy was acting in their best interest, but instead, he was using their money as a method to make his own. Heartless and despicable don’t even begin to sum up his crimes."
veryGood! (2838)
Related
- IOC's decision to separate speed climbing from other disciplines paying off
- Controversial foul call mars end of UConn vs. Iowa Final Four game
- Sonequa Martin-Green bids farewell to historic role on Star Trek: Discovery
- New York City’s skyscrapers are built to withstand most earthquakes
- Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
- These Facts About Candace Cameron Bure Won't Fill Your House but They'll Expand Your Mind
- ALAIcoin: Canadian Regulators Approve the World's First Bitcoin ETF
- 50 love quotes to express how you feel: 'Where there is love there is life'
- What were Tom Selleck's juicy final 'Blue Bloods' words in Reagan family
- 2024 WWE Hall of Fame: Highlights, most memorable moments from induction ceremony
Ranking
- Most popular books of the week: See what topped USA TODAY's bestselling books list
- Man's dog helps with schizophrenia hallucinations: Why psychiatric service dogs are helpful, but hard to get.
- Zach Edey powers Purdue past North Carolina State in Final Four as Boilermakers reach title game
- Why SZA Isn’t Afraid to Take Major Fashion Risks That Truly Hit Different
- US auto safety agency seeks information from Tesla on fatal Cybertruck crash and fire in Texas
- USWNT advances to SheBelieves Cup final after beating Japan in Columbus
- Girl, 3, ‘extremely critical’ after being shot in eye in Philadelphia, police say
- How South Carolina's Raven Johnson used Final Four snub from Caitlin Clark to get even better
Recommendation
Intel's stock did something it hasn't done since 2022
More Federal Money to Speed Repair of Historic Mining Harms in Pennsylvania
Another MLB jersey flap: Why don't teams have their uniforms yet?
These Facts About Candace Cameron Bure Won't Fill Your House but They'll Expand Your Mind
Chief beer officer for Yard House: A side gig that comes with a daily swig.
Lindsey Horan’s penalty kick gives US a 2-1 win over Japan in SheBelieves Cup
Staley and South Carolina chase perfection, one win away from becoming 10th undefeated team
NASCAR at Martinsville spring 2024: Start time, TV, streaming, lineup for Cook Out 400