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Army Financial Counselor Indicted for Defrauding Gold Star Families of $9.9 Million
Major in U.S. Army Reserves accused of misusing his position to defraud military families and enrich himself
TRENTON, NJ - A U.S. Army financial counselor from Monmouth County, New Jersey, has been indicted on charges of defrauding Gold Star families, announced U.S. Attorney Philip R. Sellinger. Caz Craffy, 41, of Colts Neck, faces multiple charges including wire fraud, securities fraud, and making false statements in a loan application, amongst others.
Craffy, also known as "Carz Craffey", was responsible for providing financial education to the beneficiaries of servicemembers who died during active duty, also known as Gold Star families. From November 2017 to January 2023, he allegedly used his position to target these families, persuading them to invest their survivor benefits in accounts he managed privately. The families were under the impression that this was authorized by the Army, which it was not.
The defendant, also a major in the U.S. Army Reserves, accumulated more than $9.9 million from the families between May 2018 and November 2022. He made unauthorized trades that earned him high commissions while the families lost over $3.4 million. Craffy personally made more than $1.4 million in commissions from the unauthorized trades.
U.S. Attorney General Merrick B. Garland remarked on the severity of the crime, stating that, "Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime. Predatory conduct that targets the families of fallen American service members will be met with the full force of the Justice Department."
Craffy is expected to make his initial appearance today before U.S. Magistrate Judge Tonianne J. Bongiovanni at the Trenton Federal Courthouse. If convicted, the wire and securities fraud charges could carry a maximum penalty of 20 years in prison each, along with heavy financial penalties.
The Securities and Exchange Commission (SEC) has also filed a civil complaint against Craffy, and he has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).
The investigation leading to the indictment involved multiple agencies, including the Department of the Army Criminal Investigation Division, Defense Criminal Investigative Service, FBI, and Homeland Security Investigations Newark. The charges and allegations contained in the indictment are accusations, and the defendant is presumed innocent unless and until proven guilty.
