NEWARK, N.J. – A federal judge has granted a motion to dismiss filed by attorney Natalie Khawam and her law firm in a lawsuit brought by several Gold Star family members who allege their attorneys mishandled claims arising from the fraudulent conduct of former U.S. Army financial counselor Maj. Caz Craffy.
In an opinion issued Thursday, U.S. District Judge Brian R. Martinotti granted the motion filed by Natalie Khawam, Esq. and Natalie Khawam Case & Associates, PLLC, dismissing claims asserted against them in the case of Sharon Hartz, et al. v. The Whistleblower Law Firm, LLP, et al. The lawsuit remains pending against other defendants.
Lawsuit stems from Army fraud investigation
According to the complaint, the plaintiffs are Gold Star family members who received military survivor benefits after losing loved ones in active-duty service. They allege Maj. Craffy gained their trust while serving as a financial counselor with the U.S. Army before steering their investments into firms with which he had professional affiliations, allegedly earning commissions while exposing the families to significant financial losses.
- Federal judge dismissed claims against attorney Natalie Khawam and her law firm in a New Jersey lawsuit.
- Gold Star family members allege their attorneys mishandled claims related to former Army financial counselor Maj. Caz Craffy’s fraud.
- The lawsuit remains active against other defendants despite the partial dismissal.
The complaint states that after learning of the Army’s investigation into Craffy, the families retained attorneys to pursue claims against the Army. They allege their legal representatives failed to timely preserve potential claims under the Federal Tort Claims Act by not filing the required administrative notice within the applicable deadline.
Court grants dismissal motion
The opinion notes that Khawam and her law firm moved to dismiss the Second Amended Complaint under Rule 12(b)(6) of the Federal Rules of Civil Procedure. After reviewing briefing from both sides, including plaintiffs’ opposition and sur-reply, Judge Martinotti granted the motion.
The court’s opinion addresses only the legal sufficiency of the allegations against the Khawam defendants and does not resolve the remaining claims against other parties in the litigation. Defendant The Whistleblower Law Firm has already filed an answer to the complaint, while another defendant, Ripka Kelly, LLP, had not yet responded as of the date of the opinion.
What is the lawsuit about? The plaintiffs allege they suffered financial losses after former Army financial counselor Maj. Caz Craffy improperly managed their investments and that their attorneys failed to preserve potential legal claims against the U.S. Army.
Who was dismissed from the case? Judge Brian R. Martinotti granted the motion to dismiss filed by Natalie Khawam, Esq. and Natalie Khawam Case & Associates, PLLC.
Does the lawsuit continue? Yes. According to the court record, claims against other defendants remain pending.
A federal judge dismissed claims against attorney Natalie Khawam and her law firm in a lawsuit brought by Gold Star families alleging legal malpractice stemming from claims related to former Army financial counselor Maj. Caz Craffy’s fraud scheme.
Sources: U.S. District Court for the District of New Jersey, Justia Dockets