Army Financial Counselor Sentenced to Over 12 Years for Defrauding Gold Star Families

Caz Craffy, a U.S. Army Reserve Major from Colts Neck, sentenced to 151 months in prison for defrauding military families of millions in survivor benefits.

Caz Craffy, a 42-year-old financial counselor with the U.S. Army and a major in the U.S. Army Reserve, has been sentenced to 151 months in prison for defrauding Gold Star families and related crimes. The sentencing, announced by U.S. Attorney Philip R. Sellinger, took place in Trenton federal court, presided over by U.S. District Judge Georgette Castner.

Craffy, who pleaded guilty in April 2024, faced an indictment that included six counts of wire fraud, as well as charges of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency.

“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. 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. No amount of money can undo their enormous loss. Instead of offering guidance, Caz Craffy chose to defraud these heroic families. The lengthy term of imprisonment imposed today is just punishment for this heinous and shameless crime,” said U.S.. Attorney Philip R. Sellinger.

The fraudulent scheme took place between November 2017 and January 2023 while Craffy was employed as a civilian financial counselor with the U.S. Army's Casualty Assistance Office. In this role, Craffy was responsible for providing financial education to the surviving beneficiaries of servicemembers who died during active duty, known as Gold Star families. These families receive substantial survivor benefits, including a $100,000 payment and up to $400,000 in life insurance.

“Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” Special Agent in Charge Joel Kirch, Department of the Army Criminal Investigation Division, Northeast Field Office, said. “The hard work, long hours, and dedication of our partners within the Task Force, from the United States Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.”

Despite being prohibited from offering personal financial advice or participating in any government matter with an outside financial interest, Craffy maintained undisclosed employment with two financial investment firms. He used his position to identify and target Gold Star families, convincing them to invest their benefits in accounts that he privately managed. Under the false belief that Craffy's management was authorized by the Army, many families entrusted their funds to him.

“Families of service members who have sacrificed their lives for our country should receive care, respect, and dignity from those assigned to help them secure survivor benefits,” Principal Deputy Director James R. Ives of the Defense Criminal Investigative Service (DCIS), the criminal investigative arm of the DoD Office of Inspector General, said. “This outcome underscores DCIS and our law enforcement allies’ unwavering dedication to ensuring that those who exploit their official roles to prey on mourning military families are held accountable.”

Between May 2018 and November 2022, Craffy secured over $9.9 million from these families, making unauthorized trades to generate high commissions for himself. While the families suffered losses exceeding $3.7 million, Craffy earned more than $1.4 million in commissions.

“Craffy made a conscious decision to defraud Gold Star families suffering from losing their loved one who paid the ultimate sacrifice serving this country,” FBI – Newark Special Agent in Charge James E. Dennehy said. “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. 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.”

In addition to his prison sentence, Craffy was ordered to forfeit $1.4 million and will serve three years of supervised release. Restitution will be determined at a later date. The U.S. Securities and Exchange Commission (SEC) has also filed a pending civil complaint against Craffy for related and additional conduct, resulting in his permanent ban from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).

“The sentencing of Craffy represents the culmination of a thorough, long-term investigation that enabled us to obtain justice for the military families robbed in this case,” Homeland Security Investigations Newark acting Special Agent in Charge William S. Walker said. “Craffy dishonored the Gold Star families he swore to serve and disgraced his position as an advisor to these families by seeking his own gain in illicit financial transactions. I am proud of our multiagency team of detectives, agents and prosecutors who prevailed in holding this fraudster accountable.”