A New Jersey financial advisor and U. S. Army serviceman admitted to defrauding Gold Star people who were awarded death benefits after their loved ones passed away while serving in the military U. S. authorities said Tuesday.
Caz Craffy, 41, of Colts Neck, admitted guilt on six cable- and securities-fraud counts, making false statements on a loan application, stealing money from someone else, and lying to a national agency.
Craffy, also known as “Carz Craffey ” was indicted in June 2023 after being accused by prosecutors of pursuing the families of deceased soldiers and paying millions in income on trades in monetary securities without the consent of his clients.
Attorney General says that those who target and steal from the people of fallen American service members may be held responsible for their crimes. Robert B. Garland said in a media release. “Nothing you remove the huge loss that Gold Star communities have suffered, but the Justice Department is determined to do everything in our strength to safeguard them from further damage. ”
Craffy was a key in the U. S. Army having served as a civil staff of the  since 2003; U. S. Army at Joint Base McGuire-Dix-Lakehurst from November 2017 through January 2023 as a fiscal consultant, officials said.
Gold Star families, families of military veterans that died while on active duty are entitled to$ 100,000 plus up to$ 400,000 in service member life insurance, officials with the U. S. District Attorney’s department said in a press release.
Craffy was tasked with providing public financial education to people receiving death benefits as a civil financial consultant, and she was not permitted to offer her own opinions on what to do with those benefits, according to officials.
Craffy acknowledged that he had no right to personally participate in any state proceeding that he had money for, but he continued to work for two financial institutions after retiring. Point Pleasant Beach and Boca Raton, Florida, officials said.
According to the indictment, the financial companies paid Craffy commissions based on the volume and size of trades, not whether they had earned any money, and were compensated from the accounts on the clients ‘ behalf, according to the indictment.
According to authorities, Craffy acknowledged that he encouraged people to put money into addresses he managed in his secret, non-profit sector.
Between May 2018 and Craffy collected more than$ 9 in November 2022. 9 million from Gold Star individuals to make deals without prior consent and engage in accounts he managed in his private capacity, according to officials, which was against the policies of both financial firms.
Craffy made more than$ 1 million. Authorities claimed that the unauthorized trades cost$ 4 million in commissions, leading to losses of more than$ 3. 7million.
On Tuesday, a Craffy lawyer did not respond to a request for comment.
Sentencing is scheduled for Aug. 21, 2024.
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