Financial fraud has been perpetrated by bad actors since the dawn of time, and sadly it's still very prevalent today. However, some swindles, while all have terrible consequences, are a bit more despicable than others. Allegedly, such is the case of Caz Craffy. Once a hero, Caz Craffy, Army Reserve member, is now facing indictment and civil legal issues as he is suspected of defrauding the military community. To make matters worse, the man from Colts Neck, New Jersey isn’t just accused of affecting the military community in general, but specifically Gold Star families. Related read: Gold Star Spouse Day: Honoring The Surviving Spouses of Lost Veterans

Caz Craffy, Army Financial Advisor, Accused of Defrauding Gold Star Families

Army financial counseling is a great benefit for those who have served. This benefit helps military members and their families protect and grow their finances. But Caz Craffy has allegedly betrayed the trust of those he was charged with helping and used his position and knowledge to defraud Gold Star families for his own gain. Major Caz Craffy was a financial advisor that Army personnel depended on during his time in the Reserves. Now, he is facing ten counts in his indictment, which include six counts of wire fraud and a securities fraud allegation. The accusations brought forth for Craffy on July 7, 2023, by the U.S. Department of Justice (DOJ) show that the government believes he is responsible for tricking Gold Star families. This resulted in terrible investments that only benefited Caz Craffy and resulted in millions of dollars in losses for those affected. Allegedly, using the alias “Carz Craffey,” trades went on without approval while funds were put into accounts managed by Craffy. Because Caz Craffy would receive commissions based on the size of the investments made, this was quite lucrative for the Carz, not so much for his clients. The indictment claims that various excuses were given to the victims who were looking for answers. These include inflation, the pandemic, and war in Europe. But overall, allegedly, signs point to the simple fact that Craffy made bad investments, without permission at that. Suggested read: How To Get the New Free National Park Pass for Veterans

His Alleged Victims Were Gold Star Families Grieving a Loss

Gold Star families are an especially vulnerable target and to defraud them requires a particular lack of conscience. If the allegations are true, then Craffy would have known his targets well and how to take advantage of their particular circumstances. For instance:

• All Gold Star families are those that have had an immediate member of their family pass away due to serving in the U.S. military.
• These families are provided with a variety of benefits, including a $100,000 death benefit. Gold Star families can also receive as much as $400,000 in life insurance.
• Financial counselors are provided by the U.S. military for those grieving to help navigate these tricky decisions during a time of loss.

Anyone can see how such an opportunity would present itself to a man like Craffy. The fraud is said to have occurred between May 2018 and November 2022 and went on for over four years. This would total $9 million in benefits used for investments that yielded $3 million in losses, but $1.4 million in commissions. A statement was delivered by Attorney General Merrick Garland on the charges being brought against Craffy. “Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime. As alleged in the indictment, the defendant, in this case, used his position as an Army Financial Counselor to defraud Gold Star families, steal their money, and enrich himself. Predatory conduct that targets the families of fallen American service members will be met with the full force of the Justice Department.”

Caz Craffy is Also Facing Civil Legal Issues

In addition to the charges Craffy is facing, a civil complaint was filed by the Securities and Exchange Commission (SEC) in relation to the allegations. Additional punishments he faces include a ban from working with members of the Financial Industry Regulatory Authority Inc. (FINRA). If these allegations are proven true, there are no excuses for Caz Craffy taking advantage of vulnerable families. Sadly, this is a reminder to us all to be careful in whom we trust and a sad reality of just how much support the military community needs when it can’t even trust those positioned to help them. Read next: What Is a Protected Veteran Status & How Can It Help My Career