A former Army financial counselor was sentenced this week to more than 12 years in prison for using his position to defraud Gold Star families out of millions, the Justice Department announced this week.
Caz Craffy, also known as “Carz Craffey,” 42, pleaded guilty in April after officials charged him with multiple charges, including six counts of wire fraud.
As a result of the scheme, the Gold Star families — relatives of service members who gave the ultimate sacrifice — lost more than $3.7 million, while Craffy earned more than $1.4 million in commissions.
In addition to the prison term, a federal judge sentenced Craffy to three years of supervised release and ordered forfeiture of $1.4 million, according to a department release, which added that restitution will be determined at a later date.
“Craffy made a conscious decision to defraud Gold Star families suffering from losing their loved one who paid the ultimate sacrifice serving this country,” FBI Special Agent in Charge James Dennehy said in the announcement.
“They believed Craffy was acting in their best interest, but instead, he was using their money as a method to make his own,” he said. “Heartless and despicable don’t even begin to sum up his crimes.”
From November 2017 to January 2023, Craffy was a civilian Army employee, working as a financial counselor with the Casualty Assistance Office, responsible for providing advice to the surviving beneficiaries of deceased troops who can be eligible for hundreds of thousands of dollars in compensation.
From May 2018 to November 2022, he obtained more than $9.9 million from Gold Star families to invest in accounts he managed on his own and outside the system, repeatedly executing trades often without the families’ authorization, earning himself high commissions in the process, the release states.
He let the vast majority of them mistakenly believe his management of their money was done on behalf of and with the Army’s authorization.
Authorities pursued Craffy — who is also a major in the U.S. Army Reserve, where he has served since 2003 — following an investigation by The Washington Post.
The U.S. Securities and Exchange Commission has a pending civil complaint against Craffy based on the same and additional conduct, according to the feds, and Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc.
The Army Reserve acknowledged Craffy received his federal sentence, but declined to say whether he is expected to face additional punishment by the military.
“The U.S. Army Reserve remains committed to holding personnel accountable for conduct that does not align with DoD and Army policies,” Army Reserve spokesperson Lt. Col. Addie Leonhardt told Military Times in a statement. “However, the Army Reserve generally cannot comment on pending military personnel matters.”
Craffy’s attorney declined a request for comment.
Jonathan is a staff writer and editor of the Early Bird Brief newsletter for Military Times. Follow him on Twitter @lehrfeld_media
