SOUTH JERSEY (KYW Newsradio) — A former U.S. Army financial counselor has admitted to pocketing more than $1 million from families of fallen soldiers.
U.S. Attorney Philip Sellinger says Caz Craffy, 41, of Monmouth County was supposed to be giving general financial advice to Gold Star families. Instead, investigators say, he directed them to invest survivor benefits with two firms he was working with illegally.
Nearly $10 million in survivor benefits were fraudulently invested on behalf of Gold Star families.
In his role as a civilian counselor, Craffy wasn’t supposed to be giving investment advice in which he had personal interests, but investigators say he guided families to invest with those two firms, causing them $3.7 million in losses and nearly $1.5 million in commissions paid to him from family accounts.
“We will use every means at our disposal to ensure that those who defraud our military families are held accountable,” said Sellinger in a statement. “Caz Craffy now faces the prospect of years in prison for ripping off these families to line his own pocket."
Investigators say he never disclosed to the Army that he was working with outside investment firms. Families were under the impression the investment ideas presented were approved by the Army.
As part of the plea deal, Craffy will spend between 8-10 years in federal prison. Sentencing is set for August.