Former U.S. Army financial counselor Caz Craffy was sentenced to over 12 years in prison for defrauding Gold Star families of fallen soldiers out of millions of dollars through a life insurance scheme. Craffy, who worked as a civilian employee for the Army, targeted these families by encouraging them to invest their benefits into accounts that he managed without notifying the Army. He directed over $9.9 million from these families into accounts he managed privately, making unauthorized trades and earning high commissions. As a result, Gold Star families lost over $3.7 million while Craffy received over $1.4 million in commissions.
Craffy pleaded guilty to wire fraud, securities fraud, making false statements in a loan application, and other criminal charges. In addition to his prison sentence, he was ordered to forfeit $1.4 million and serve three years of supervised release. The scheme, which took place between May 2018 and November 2022, was described by U.S. Attorney Philip R. Sellinger as an egregious act of preying upon families of fallen service members during their most vulnerable moments.
Prosecutors emphasized the impact of Craffy’s actions on the families, who were already dealing with the loss of their loved ones. The FBI Special Agent in Charge, James E. Dennehy, condemned Craffy’s actions as heartless and despicable, noting that the money stolen from these families was meant to provide financial security and ease their burdens, not to be used for personal gain. By taking advantage of his position and misleading the families, Craffy betrayed the trust that they had placed in him.
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