Army Reserve Major Brought to Justice for Defrauding Gold Star Families
Many servicemembers treat Gold Star families like their own, protecting and helping their fallen comrades’ families in any way they can.
But one Army officer certainly didn’t feel that way. Instead of showing Gold Star families the respect and compassion they deserved, he used his trusted position as a military financial counselor to defraud and steal from them.
Guilty Plea
This week, Caz Craffy pleaded guilty to charges related to what prosecutors say amounted to defrauding military families of bereavement and other casualty-related pay.
“Caz Craffy admitted today that he brazenly took advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, using lies and deception,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey in an April 16 press release.
“Caz Craffy now faces the prospect of years in prison for ripping off these families to line his own pocket,” Sellinger said.
Reserve Officer and Civilian Counselor
Craffy’s civilian job was as a military financial counselor, but he was also a Major in the U.S. Army Reserves, a relatively senior military position. The fact that a civilian military employee would rip off grieving military families is terrible enough—but that a military officer would do it is even more sordid.
The military provides servicemembers and their families with free financial counseling to help them better understand and manage their money and prepare for retirement and other life events.
Unauthorized Trades
The SEC, which enforces securities laws in the United States, charged Craffy in July 2023 with fraud, according to a statement last summer. They claim that Craffy used his position as an Army financial counselor to persuade his victims to transfer their bereavement funds to outside accounts that he managed.
Craffy then made unauthorized trades on those accounts while charging his victims commissions for those trades. In a 54-month period, those commissions collectively added up to $1.64 million, said the SEC.
These trades were not only unauthorized by his clients, but they were also risky, leading to an additional $3.59 million in realized and unrealized losses for his victims.
Craffy even stole $50,000 from an investment account of a minor whose parent died on military duty, the SEC said.
Fraud Encourages Congresswoman to Close Loophole
The only good that has come from this disgusting episode is that Craffy’s arrest last summer has spurred one Congresswoman to sponsor legislation to better vet financial counselors in the military.
“We have an obligation to support our Gold Star Families who have lost loved one(s) and (who) made the ultimate sacrifice for our country. Rather than honor that obligation, Caz Craffy saw it as an opportunity to enrich himself and steal from these vulnerable families in mourning,” said Representative Mikie Sherrill in a written statement.
Congresswoman Sherrill, who served as a Navy officer for more than a decade, introduced an amendment in the 2024 National Defense Authorization Act (NDAA) requiring the military to verify that their financial counselors are free of conflicts of interest and otherwise suitable for their crucial job.
The NDAA amendment passed with bipartisan support.
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