Caz Craffy, a former U.S. Army financial counselor from New Jersey, has been criminally charged for defrauding military families who had lost loved ones in service.
The U.S. Department of Justice has indicted Craffy on ten counts, including wire fraud, securities fraud, and making false statements. He is accused of targeting at least two dozen Gold Star families and causing millions of dollars in losses while earning substantial commissions for himself.
According to authorities, Craffy manipulated grieving families into transferring $9.9 million of survivor benefits into private brokerage accounts under his control, separate from his Army duties, between May 2018 and November 2022. He allegedly made unauthorized trades in these accounts, resulting in over $3.4 million in losses while pocketing more than $1.4 million in commissions.
One widow, seeking conservative investments for her children’s college expenses and her mother, reportedly lost 60% of her $400,000 investment. Craffy had promised that the investment could grow to $1 million within seven years. In some cases, he allegedly instructed victims not to check their account statements to conceal the losses.
The U.S. Securities and Exchange Commission (SEC) has also filed civil charges against Craffy. They highlighted a particularly egregious instance where he misappropriated $50,000 from the retirement account of a 13-year-old girl whose father had passed away.
U.S. Attorney Philip Sellinger condemned Craffy’s actions, emphasizing that defrauding vulnerable families would not be tolerated. The SEC Enforcement Chief, Gurbir Grewal, called the fraud “despicable in its reach” and “heartbreaking in its impact,” expressing hope that the charges would send a message to others who target military families.
Craffy’s lawyer, Mark Berman, declined to comment on the matter.