EXPLOITATIVE

Ex-Army Staffer Indicted in Alleged Multimillion-Dollar Fraud of Gold Star Families

Caz Craffy, 41, is accused of using his position as an Army financial counselor to target Gold Star families and sway them to invest their benefits in accounts he managed.

A former U.S. Army financial counselor and major in the Army Reserves has been indicted in an alleged multimillion-dollar fraud scheme of two Gold Star families, the New Jersey District Attorney’s Office announced Friday. Caz Craffy, 41, is accused of leveraging his position as an Army financial counselor to target Gold Star families—surviving beneficiaries of a fallen soldier—and sway them to invest their survivor benefits in specific investment accounts. What the families didn’t know, according to the indictment, is that he managed those accounts in his outside employment with two financial investment firms—which he also didn’t tell the Army about. Craffy allegedly got the families to hand over nearly $10 million to invest in his privately managed accounts, where he executed trades without the families’ permission. While the Gold Star families lost more than $3.4 million during the scheme, Craffy stuffed his pockets with $1.4 million in commissions, the indictment alleges. He is charged with wire fraud, securities fraud, making false statements in a loan application, committing acts furthering a personal financial interest, and making false statements to a federal agency.