US Army Counselor Admits To Stealing Millions From Families Of Dead Soldiers In Insurance Fraud
A former U.S. Army financial adviser pleaded guilty to defrauding grieving military families out of millions of dollars in life insurance payouts.
The victims of Caz Craffy’s malicious alleged scam include a teenage girl whose father died, as well as a handful of military widows.
Craffy, 41, could face up to a decade behind bars after pleading guilty to all 10 charges leveled against him, including securities and fraud, and making false statements.
In a statement, Attorney General Merrick Garland said: ‘Those who target and steal from the families of fallen American soldiers will be held accountable for their crimes.’
For more than four years from 2018 to 2022, Craffy — of Colts Neck, New Jersey — defrauded members of at least 24 Gold Star families into transferring nearly $10 million or survivor benefits to private brokerage accounts under his control, according to prosecutors.
Military financial advisor Caz Craffy, 41, allegedly defrauded grieving families of soldiers killed in war out of millions of dollars.
Craffy (pictured) pleaded guilty to ten counts relating to his fraudulent investment scheme. He will be sentenced in August
Gold Star families are those whose immediate family members die on active duty while serving the country.
Survivors of the fallen can receive up to $500,000 in total death benefits.
The alleged fraudster executed more than 1,000 unauthorized trades, lost more than $3.4 million and generated more than $1.4 million in commissions, which he cashed.
The victims were under the impression that the Army approved of Craffy’s behavior when in fact he was a civilian employee of the Army. He is also a major in the US Army Reserve after enlisting in 2003 – it is unclear whether he will receive further punishment through the military justice system.
According to court documents, Craffy swiped nearly two-thirds of a widow’s $400,000 investment account meant to fund her children’s college education and care for her aging mother.
He also stole $50,000 from a 13-year-old girl’s retirement account.
The defendant’s plea was entered before U.S. District Judge Georgette Castner in Trenton, New Jersey.
He will be sentenced on August 21 this year.
Recommended federal guidelines would keep Craffy away for between 97 and 121 months (roughly 8-10 years).
Under the plea deal he entered into, Craffy agreed not to appeal a conviction that falls within that range.
He also agreed to repay his victims using funds that include the proceeds from the sale of his home.
In the wake of the discovery of the fraud, Gold Star mother Sharon Hartz said: ‘It’s unthinkable. He didn’t respect me. He respected my son. My family.;
SSG Rodney C. Bevard’s (pictured) widow put Craffy in charge of conservatively investing about $370,000 in insurance money after Bevard’s passing
Under his plea deal, Craffy has agreed to pay back the families he defrauded — including members of fallen Sgt. Thomas Anastasios (pictured) family
Sharon Hartz (right) with her son Sgt. Thomas Anastasio, her daughter Morgan (center) and her younger son Mason are some of the family members of the fallen who were cheated by Craffy
Craffy’s job, as originally intended, was to provide basic financial guidance to Army families facing the loss of an immediate family member.
Had he not taken a plea deal, Craffy might have faced decades in prison if convicted.
“Nothing can undo the tremendous loss that Gold Star families have suffered, but the Department of Justice is committed to doing everything in our power to protect them from further harm,” AG Garland said.
In the wake of Craffy’s misdeeds, lawmakers in Washington are now pushing legislation that would strengthen the military’s oversight of financial advisers who help the survivors of deceased service members.
The law requires financial advisers employed by the Department of Defense to submit records annually certifying that there are ‘no conflicts of interest’ or ‘no improper advantage from their position’ when they are employed.
Natasha Bevard, whose husband, Rodney C. Bevard, died by suicide in 2020 after a long military career, has praised the legislation after pledging to ensure that ‘no other Gold Star family will be financially exploited. Especially in their most vulnerable mental state.’