Former Army Financial Counselor Sentenced for Defrauding Gold Star Families

Posted on September 26th, 2024 at 10:28 AM
Former Army Financial Counselor Sentenced for Defrauding Gold Star Families

From the desk of Jim Eccleston at Eccleston Law

A former U.S. Army financial counselor, Caz Craffy, also known as “Carz Craffey”, was sentenced to 151 months in prison for defrauding Gold Star families and committing related crimes. Craffy pleaded guilty in April to multiple charges, including wire fraud, securities fraud, and making false statements, according to the Department of Justice (DOJ).

ThinkAdvisor reports that from November 2017 to January 2023, Craffy served as a civilian financial counselor with the U.S. Army's Casualty Assistance Office, where he was responsible for providing financial education to the beneficiaries of service members killed in action. Despite being prohibited from offering personal opinions on economic decisions, Craffy secretly maintained outside employment with two financial investment firms.

Craffy exploited his position to identify and target Gold Star families, convincing them to invest their survivor benefits in accounts he managed through his private employment. The DOJ noted that many families mistakenly believed Craffy was acting with the Army’s authorization.

As reported by ThinkAdvisor, Craffy obtained over $9.9 million from these families. He conducted unauthorized trades within their accounts, generating substantial commissions for himself. As a result of his actions, the affected families lost more than $3.7 million, while Craffy personally profited by more than $1.4 million in commissions.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

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