A financial counselor for the Army's Casualty Assistance Center in New Jersey pleaded guilty Monday to wire and securities fraud in a scheme that bilked Gold Star families out of the money awarded them after the death of their service member.
Caz Craffy, who also went by Carz Craffey, was responsible for educating surviving family members on the financial benefits they receive: a $100,000 death gratuity and life insurance of up to $400,000.
Instead of simply advising the families, Craffy, who also was employed with two different financial investment firms, used his position to identify families and encouraged them to invest in accounts with the firms. He misled them into thinking that the money management was part of the Army's benefits and was service-approved, according to the Justice Department.
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From May 2018 to November 2022, Craffy invested more than $9.9 million of the families' money in accounts he managed, executing trades — sometimes without the families' permission — and earning high commissions.
During that time, the Gold Star families' accounts lost more than $3.7 million while Craffy, 41, earned $1.4 million in commissions from them.
As an employment requirement, Craffy was prohibited from offering personal opinions on beneficiaries' benefits decisions, and he was not allowed to participate in government matters in which…
