Former U.S. Army financial counselor Caz Craffy was sentenced to over 12 years in prison for defrauding Gold Star families and other military families out of millions of dollars through a life insurance scheme. Craffy, who worked for the Army, targeted families of fallen soldiers by encouraging them to invest their benefits into accounts managed by him without notifying the Army. He made unauthorized trades with their money, leading to losses of over $3.7 million for the families while he earned over $1.4 million in commissions. Craffy pleaded guilty to wire fraud, securities fraud, making false statements, and other charges.
As a financial counselor, Craffy was responsible for providing financial education to surviving beneficiaries of servicemembers killed on duty, including Gold Star families. Prosecutors said he used his position to exploit these families at their most vulnerable moments. In addition to the prison term, Craffy was sentenced to three years of supervised release and ordered to forfeit $1.4 million. The FBI described Craffy’s actions as heartless and despicable, stating that he took advantage of the families’ trust for his own financial gain. U.S. Attorney Philip R. Sellinger emphasized the need to provide support and financial security to Gold Star families who have sacrificed for their country. The case highlights the importance of protecting vulnerable individuals from financial exploitation and holding those who abuse their positions of trust accountable for their actions.
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