A former Army financial counselor accused of embezzling millions of dollars from deceased soldiers’ life insurance funds has pleaded guilty in federal court, acknowledging his involvement in a massive scheme that preyed on grieving widows and children. Caz Craffy, 41, of Colts Neck, N.J., admitted to exploiting his position to steer clients to a brokerage firm where he worked, resulting in significant losses for families already grappling with loss.
Federal investigators brought charges against Craffy following a Washington Post investigation, alleging that he misused his role as a survivor outreach financial counselor for the Army to funnel clients to the brokerage firm. Over the span of four years, Craffy allegedly oversaw losses totaling $3.7 million across accounts belonging to two dozen families, while pocketing approximately $1.4 million in commissions.
Craffy faced 10 counts, including wire and securities fraud, with a potential sentence of decades in prison if convicted at trial. However, he reached a plea agreement that could see him behind bars for eight to 10 years. The sentencing is scheduled for August, where the judge will also determine the restitution Craffy must pay.
Attorney General Merrick Garland emphasized the importance of holding individuals like Craffy accountable for preying on the families of fallen servicemembers. While the plea deal offers some closure to the affected families, many expressed dissatisfaction, feeling that Craffy’s actions were a betrayal of trust during their most vulnerable moments.
The criminal enterprise, which began in 2018, capitalized on Craffy’s position within the Army, where he was tasked with providing financial guidance to bereaved families. Despite regulations prohibiting financial counselors from recommending specific investments, Craffy allegedly used his military credentials to gain the trust of families, ultimately leading them to invest in speculative and volatile assets.
The scheme prompted legislative action, with Congress passing new requirements for the Defense Department to strengthen vetting procedures for military financial counselors. Additionally, the U.S. Securities and Exchange Commission has filed a civil complaint against Craffy.
As a major in the Army Reserve, Craffy’s future within the military remains uncertain. The Army Reserve has not disclosed potential disciplinary actions, citing privacy laws, but emphasized their commitment to addressing the matter in accordance with military regulations and the Uniform Code of Military Justice.
