Army Reserves Major's Fraud Scheme Targets Gold Star Families, Stealing $3.5 Million in Death Benefits

A U.S. Army Reserves major and financial counselor with the Army, Caz Craffy, has been charged by the Justice Department for allegedly defrauding Gold Star families. Craffy is accused of tricking grieving family members into handing over hundreds of thousands of dollars of their deceased loved one's military benefits. He allegedly executed trades using their money, resulting in market losses and commissions paid, while earning around $1.4 million in commissions himself. Craffy is facing multiple criminal charges, including wire fraud and securities fraud. The Securities and Exchange Commission has also charged him with violating federal securities laws. Prosecutors say Craffy used his position as a financial counselor to gain access to the families and pushed them to transfer their benefits into brokerage accounts he managed, engaging in high-risk trades without their approval.