Current:Home > BackU.S. Army financial counselor pleads guilty to defrauding Gold Star families-LoTradeCoin
U.S. Army financial counselor pleads guilty to defrauding Gold Star families
View Date:2024-12-23 23:43:29
A United States Army financial counselor could face decades in prison for duping the families of fallen soldiers out of millions of dollars and, in turn, generating millions for himself through a life insurance scheme, authorities said.
The U.S. Department of Justice announced on Tuesday that Caz Craffy, who is also known as Carz Craffey, pleaded guilty to six counts of wire fraud and other criminal charges including securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest and making false statements to a federal agency.
The 41-year-old from Colts Neck, New Jersey is scheduled to be sentenced in district court on Aug. 21. The maximum penalties for the charges include 20 years in prison for each count of wire fraud and securities fraud and five years in prison for the remaining charges, the Justice Department said in a news release. Craffy could also be ordered to pay fines as high as $7 million — twice what his victims lost in the financial scam — for all counts but one.
Craffy worked as a civilian employee in the Army between November 2017 and January 2023, serving as a financial counselor with the Casualty Assistance Office, where he was mainly responsible for educating the surviving beneficiaries of soldiers killed in action about their financial options, according to the Justice Department. Those beneficiaries could have rights to as much as $500,000 from the military. In addition to this adviser role, Craffy was also a major in the U.S. Army Reserves.
Authorities say that Craffy was prohibited as a military financial counselor from providing any advice based on his personal opinions to beneficiaries, who are called Gold Star families for the award given posthumously to service members who have died while on active duty. But, as he operated a private investment firm in secret, Craffy encouraged the families to invest their survivor benefits in accounts that he managed without notifying the Army.
Most of the families were under the impression that Craffy, as their financial adviser, was offering guidance that had already been approved by the military when in reality he steered more than $9.9 million of their benefits into accounts that he used to make trades without their consent. Craffy earned commission from those trades, which were not always in the beneficiaries' best interests. Gold Star families lost over $3.7 million during the scheme, while Craffy received more than $1.4 million in commissions taken out of their accounts. He admitted to these allegations as part of the guilty plea, according to the Justice Department.
Craffy was indicted last July for defrauding 20 Gold Star military families, CBS New York reported at the time, citing investigators working the case. Gurbir Grewal, director of the SEC Division of Enforcement, said in a statement once charges were brought that Craffy had "abused" his positions within the Army network "to manipulate grieving family members into transferring their life insurance and family survivor benefits ... into brokerage accounts he managed," according to CBS New York.
- In:
- New Jersey
- United States Army
- Fraud
Emily Mae Czachor is a reporter and news editor at CBSNews.com. She covers breaking news, often focusing on crime and extreme weather. Emily Mae has previously written for outlets including the Los Angeles Times, BuzzFeed and Newsweek.
Twitter InstagramveryGood! (39131)
Related
- McDonald's Version: New Bestie Bundle meals celebrate Swiftie friendship bracelets
- Mischa Barton Reflects on Healing and Changing 20 Years After The O.C.'s Premiere
- Florida man charged with murder in tree-trimming dispute witnessed by 8-year-old
- Convicted murderer Alex Murdaugh agrees to plead guilty to nearly two dozen federal crimes
- Man who stole and laundered roughly $1B in bitcoin is sentenced to 5 years in prison
- Left behind and grieving, survivors of Libya floods call for accountability
- Man arrested for faking his death ahead of court date: Sheriff
- Julie Chen Moonves 'gutted' after ouster from 'The Talk': 'I felt robbed'
- Prosecutor failed to show that Musk’s $1M-a-day sweepstakes was an illegal lottery, judge says
- An American man is killed in a rafting accident in Slovenia, and two others are injured
Ranking
- California farmers enjoy pistachio boom, with much of it headed to China
- Lahaina's 150-year-old banyan tree that was charred by the wildfires is showing signs of new life
- Chicago Mayor Unveils Reforms to Fight Environmental Racism
- A look at Canada’s relationship with India, by the numbers
- A crowd of strangers brought 613 cakes and then set out to eat them
- Electrifying a Fraction of Vehicles in the Lower Great Lakes Could Save Thousands of Lives Annually, Studies Suggest
- FDA declines to approve nasal spray alternative to EpiPen, company says
- Nicole Kidman, John Lithgow auction off Zooms, artwork to aid crew members amid Hollywood strikes
Recommendation
-
Homes of Chiefs’ quarterback Mahomes and tight end Kelce were broken into last month
-
Patriots fan dies after 'incident' at Gillette Stadium, investigation underway
-
A Northern California tribe works to protect traditions in a warming world
-
Actor Bijou Phillips files for divorce from Danny Masterson after rape convictions
-
Apologetic rapper Tekashi 6ix9ine gets 45 days in prison for probation violations
-
It's not your imagination: Ford logo on 2024 F-150 pickup is new, redesigned
-
16 states underfunded historically Black land-grant universities, Biden administration says
-
Browns star Nick Chubb to undergo surgery on season-ending knee injury; Kareem Hunt in for visit