U.S. Army financial counselor pleads guilty to defrauding Gold Star families
Also: U.S. Army Financial Counselor Pleads Guilty to Defrauding Gold Star Families (U.S. Department of Justice)
________________________________________________
Source: CBS News
U.S. Army financial counselor pleads guilty to defrauding Gold Star families
By Emily Mae Czachor
April 17, 2024 / 8:32 AM EDT / CBS News
A United States Army financial counselor could face decades in prison for duping the families of fallen soldiers out of millions of dollars and, in turn, generating millions for himself through a life insurance scheme, authorities said.
The U.S. Department of Justice announced on Tuesday that Caz Craffy, who is also known as Carz Craffey, pleaded guilty to six counts of wire fraud and other criminal charges including securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest and making false statements to a federal agency.
The 41-year-old from Colts Neck, New Jersey is scheduled to be sentenced in district court on Aug. 21. The maximum penalties for the charges include 20 years in prison for each count of wire fraud and securities fraud and five years in prison for the remaining charges, the Justice Department said in a news release. Craffy could also be ordered to pay fines as high as $7 million — twice what his victims lost in the financial scam — for all counts but one.
Craffy worked as a civilian employee in the Army between November 2017 and January 2023, serving as a financial counselor with the Casualty Assistance Office, where he was mainly responsible for educating the surviving beneficiaries of soldiers killed in action about their financial options, according to the Justice Department. Those beneficiaries could have rights to as much as $500,000 from the military. In addition to this adviser role, Craffy was also a major in the U.S. Army Reserves.
-snip-
Read more: https://www.cbsnews.com/news/caz-craffy-us-army-financial-counselor-pleads-guilty-defrauding-gold-star-families-millions/
________________________________________________
Source: U.S. Department of Justice
U.S. Army Financial Counselor Pleads Guilty to Defrauding Gold Star Families
Tuesday, April 16, 2024
For Immediate Release
Office of Public Affairs
A New Jersey financial counselor with the U.S. Army and major in the U.S. Army Reserves pleaded guilty today to defrauding Gold Star families and related crimes.
Caz Craffy, also known as Carz Craffey, 41, of Colts Neck, pleaded guilty before U.S. District Judge Georgette Castner in Trenton, New Jersey, to six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency.
-snip-
According to documents filed in this case and statements made in court:
When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 payment and the servicemember’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor.
From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy acknowledged that he was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms.
Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He admitted to encouraging the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization.
From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the scheme, the Gold Star family accounts lost more than $3.7 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.
Craffy faces a maximum penalty of of 20 years in prison for each count of wire fraud and securities fraud, a maximum penalty of of two years in prison for submitting a false statement on a loan application, and a maximum penalty of five years in prison for the charges of acts affecting a personal interest and false statements to a federal agent. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest. A sentencing hearing is scheduled for Aug. 21.
-snip-
Read more: https://www.justice.gov/opa/pr/us-army-financial-counselor-pleads-guilty-defrauding-gold-star-families
= new reply since forum marked as read
