A former U.S. Army financial counselor, Caz Craffy, admitted guilt on Tuesday for defrauding grieving military families out of life insurance payments, pleading guilty to all 10 charges he faced, including wire fraud and making false statements.
The scheme targeted at least two dozen Gold Star families, including widows and a 13-year-old girl, who believed Craffy’s actions were authorized by the Army.
Over four years, Craffy manipulated victims into transferring $9.9 million of survivor benefits into private brokerage accounts he controlled.
He then made unauthorized trades, resulting in over $3.4 million in losses for victims and generating more than $1.4 million in commissions for himself.
Some victims saw significant financial harm, with one widow losing 60% of her $400,000 investment meant for her children’s college expenses. Craffy also looted $50,000 from the retirement account of a 13-year-old girl.
Attorney General Merrick Garland emphasized the commitment to holding accountable those who target and steal from the families of fallen American servicemembers.
Craffy’s plea agreement includes a recommended prison sentence of 97 to 121 months and full restitution, including proceeds from selling his home. Sentencing is scheduled for August.
The Army, while not commenting specifically on Craffy’s case, reiterated its dedication to holding personnel accountable for conduct inconsistent with Department of Defense and Army policies.
The case underscores the vulnerability of military families and the importance of safeguarding their financial well-being.
