TRENTON, NJ – Caz Craffy, a 41-year-old financial counselor with the United States Army and a major in the U.S. Army Reserves, has pleaded guilty to multiple charges of fraud involving Gold Star families.
U.S. Attorney Philip R. Sellinger made the announcement today in federal court in Trenton.
Craffy, from Colts Neck, New Jersey, admitted to six counts of wire fraud, and one count each of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency. His criminal activities involved misusing his position to divert the survivor benefits of military families into investment accounts he managed, resulting in significant financial losses for the families while he earned over $1.4 million in commissions.
Attorney General Merrick B. Garland emphasized the gravity of exploiting families of fallen servicemembers, asserting that the Justice Department is committed to protecting them from further harm. U.S. Attorney Sellinger, along with other officials, condemned Craffy’s actions as a betrayal of trust and assured that justice would be served.
Craffy’s fraudulent scheme, running from May 2018 to November 2022, resulted in more than $3.7 million in losses for the Gold Star families involved. He now faces a maximum of 20 years in prison for the wire and securities fraud charges, among other potential penalties. Sentencing is scheduled for August 21, 2024.
