Army Major Charged with Defrauding Gold Star Families of Millions
Caz Craffy, a former U.S. Army financial counselor, has been charged with wire and securities fraud for defrauding Gold Star families, the immediate relatives of deceased service members, out of life insurance and other benefits. Prosecutors allege that Craffy steered the families towards investments on which he secretly earned substantial commissions, resulting in $3.4 million in investment losses for the families and $1.4 million in commissions for himself. In addition to the criminal charges, Craffy also faces a civil complaint filed by the Securities and Exchange Commission. The charges come after a Washington Post article exposed the families' complaints, leading to proposed legislation to improve the screening of financial counselors employed by the Defense Department.