Global Courant
A former Army Reserves officer who worked as a financial adviser to the military allegedly cheated Gold Star families of their military lover’s benefits, the Department of Justice (DOJ) said Friday.
Caz Craffy, 41, a New Jersey resident, allegedly tricked the families into handing over hundreds of thousands of dollars.
He is charged with six counts of telephony fraud and one count of securities fraud, making false statements in a loan application, committing acts advancing a personal financial interest and making false statements to a federal agency.
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An Army Reserve officer allegedly targeted Gold Star families to cheat them out of death benefits, federal prosecutors said. (US Army)
“Stealing from Gold Star families whose loved ones have made the ultimate sacrifice in the service of our nation is an outrageous crime,” Attorney General Merrick Garland said in a statement. “As alleged in the indictment, the defendant in this case used his position as a financial adviser to the military to defraud Gold Star families, steal their money and enrich themselves.”
From May 2018 to approximately January 2023, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts he manages. He reportedly transacted with permission and the accounts ended up losing more than $3.4 million.
Meanwhile, Craffy earned more than $1.4 million in commissions taken from the accounts, federal prosecutors said.
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Craffy has also been charged with violating the anti-fraud provisions of the federal securities laws and Regulation Best Interest by the U.S. Securities and Exchange Commission.
Prosecutors said Craffy, while a major in the Army Reserves, used his position as a financial adviser to the military to target the Gold Star families. Gold Star families are direct relatives of a fallen soldier who died in a conflict.
When a member of the military service dies while on active duty, the surviving beneficiary is entitled to $100,000 in death benefits and a life insurance policy of up to $400,000. Many of the families believed Craffy’s management of their money was on behalf of the military, prosecutors said.
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After the families transferred money to brokerage accounts, Craffy engaged in risky transactions without approval and lost large amounts of money, authorities said.
Fox News Digital has contacted Craffy’s attorney.
