A former financial counselor for the United States Army pleaded guilty on Tuesday, according to the U.S. attorney's office, to defrauding the families of deceased service members out of life insurance premiums.
Family members of Gold Stars who are the immediate beneficiaries of a service member who perished while serving in the military on active duty are eligible to receive a payment of $100,000 in addition to the service member's life insurance, which can be worth up to $400,000.
According to prosecutors, "Caz Craffy," a 41-year-old resident of Colts Neck, New Jersey, pled guilty to misappropriating over $9.9 million from several Gold Star families for personal investment purposes in accounts he managed without the families' consent.
Claffy, a civilian employee of the U.S. Army, functioned as a financial counselor with the Casualty Assistance Office. The prosecution alleges that since 2003, he had been a major in the U.S. Army Reserves.
Prosecutors assert that Craffy earned more than $1.4 million in commissions between May 2018 and November 2022, while the Gold Star family accounts lost more than $3.7 million.
According to a press release by Attorney General Merrick Garland, individuals who prey on and pilfer from the families of deceased American service members will face legal consequences. "Although nothing can restore the incalculable suffering endured by Gold Star families, the Justice Department remains steadfast in its determination to safeguard them against additional perils," he further stated.
Craffy pleaded guilty to ten counts on Tuesday, as stated in a press release from the U.S. Attorney's Office for New Jersey. The counts included in the plea were as follows: six counts of wire fraud, one count of securities fraud, making false statements in a loan application, acting in a manner that affected a personal financial interest, and lying to a federal agency.
U.S. Attorney Philip R. Sellinger stated, "Caz Craffy admitted today that he brazenly exploited his position as an Army financial counselor to prey on the families of our fallen service members, when they were at their most vulnerable, through the use of lies and deception."
"On the altar of freedom, these Gold Star families have offered the most revered sacrifice." "Moreover, they are deserving of a small amount of financial security and the utmost regard and compassion of a grateful nation," he continued.
U.S. District Judge Georgette Castner accepted the plea of Craffy in Trenton, New Jersey. The date of his sentencing is August 21.
According to the prosecution, Craffy will serve eight to ten years in prison as a condition of his plea agreement. His sentence will include a disclosure of the amount of restitution he is required to make.
Family members of Gold Stars who are the immediate beneficiaries of a service member who perished while serving in the military on active duty are eligible to receive a payment of $100,000 in addition to the service member's life insurance, which can be worth up to $400,000.
According to prosecutors, "Caz Craffy," a 41-year-old resident of Colts Neck, New Jersey, pled guilty to misappropriating over $9.9 million from several Gold Star families for personal investment purposes in accounts he managed without the families' consent.
Claffy, a civilian employee of the U.S. Army, functioned as a financial counselor with the Casualty Assistance Office. The prosecution alleges that since 2003, he had been a major in the U.S. Army Reserves.
Prosecutors assert that Craffy earned more than $1.4 million in commissions between May 2018 and November 2022, while the Gold Star family accounts lost more than $3.7 million.
According to a press release by Attorney General Merrick Garland, individuals who prey on and pilfer from the families of deceased American service members will face legal consequences. "Although nothing can restore the incalculable suffering endured by Gold Star families, the Justice Department remains steadfast in its determination to safeguard them against additional perils," he further stated.
Craffy pleaded guilty to ten counts on Tuesday, as stated in a press release from the U.S. Attorney's Office for New Jersey. The counts included in the plea were as follows: six counts of wire fraud, one count of securities fraud, making false statements in a loan application, acting in a manner that affected a personal financial interest, and lying to a federal agency.
U.S. Attorney Philip R. Sellinger stated, "Caz Craffy admitted today that he brazenly exploited his position as an Army financial counselor to prey on the families of our fallen service members, when they were at their most vulnerable, through the use of lies and deception."
"On the altar of freedom, these Gold Star families have offered the most revered sacrifice." "Moreover, they are deserving of a small amount of financial security and the utmost regard and compassion of a grateful nation," he continued.
U.S. District Judge Georgette Castner accepted the plea of Craffy in Trenton, New Jersey. The date of his sentencing is August 21.
According to the prosecution, Craffy will serve eight to ten years in prison as a condition of his plea agreement. His sentence will include a disclosure of the amount of restitution he is required to make.
