An American Army Reserve major has acknowledged that he profited from the deaths of active-duty soldiers by unlawfully investing a portion of the funds granted to their bereaved relatives.
According to a press release from the DOJ, Caz Craffy, also known as Carz Craffey, 41, entered a U.S. District Court in Trenton, New Jersey, on Tuesday to enter a plea of guilty to six counts of wire fraud along with one count each of securities fraud, and making false statements on a loan application, committing acts toward a financial interest, and making false comments to a federal agency.
According to all reports, Craffy, a major in the United States Army Reserves, preyed on the families of deceased soldiers, also known as Gold Star families. In addition to up to $400,000 in life insurance, the immediate family of a military member who passes away while on active duty may get a payout of $500,000.
When Craffy was working as a civilian financial advisor for the U.S. Army, he approached Gold Star families and offered to help them invest a portion of their survivor money with two private financial firms, where he was also working undercover. The families believed Craffy because of his work with the U.S. Army and his status as a major in the U.S. Army Reserves. They thought he was acting as an official Army representative rather than a civilian.
Craffy fully exploited their lack of knowledge. He persuaded at least 24 Gold Star families’ members to give him $9.9 million for investments between May 2018 and November 2022, according to the Daily Mail. Given that the Gold Star accounts Craffy was managing at the time lost about $3.7 million, he must have been a terrible investor. However, the DOJ statement reveals that he received $1.4 million in commissions, all of which came from the family accounts.
He caused immense devastation to American patriots who were financially at risk. He largely lost the $400,000 that a widow had given him to help with her children’s college fund. In fact, he lost $50,000 that belonged to a girl who was 13 years old.
Gold Star mother Sharon Hartz described the additional sorrow of the stolen money as “unimaginable,” adding to her already overwhelming sadness over the death of her son, Sgt. Thomas Anastasio. Speaking of Craffy, she remarked, “He disrespected me.” “He showed my son disdain for my household.”
Attorney General Merrick Garland threatened to hold those responsible for their crimes accountable if they targeted and stole from the families of American service members who had died in combat. “The Justice Department is committed to taking all necessary precautions to protect Gold Star families from harm in the future, despite the immense loss they have endured.”
While Craffy might have faced a term of almost a century in prison for wire fraud alone, it is more likely that he will receive a sentence of eight to ten years. He agreed to pay back the Gold Star families as part of his plea deal, and he would even give them the money from his house sale. It is possible that a military court will prosecute him for a crime.
Craffy’s sentencing is scheduled for August 21.
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