Betraying the Fallen: How an Army Financial Counselor Stole Millions From Gold Star Families

There is very little in this world that upsets me more than people who would take advantage of Gold Star families in any way. A special place in hell awaits such vermin. Today, I bring you the story of one such predator. For those of you who might not be familiar with the term, a Gold Star family is one that has lost a member as a result of active duty military service.

In a shocking betrayal of trust, Caz Craffy, a former U.S. Army financial counselor and Army Reserve major, has been sentenced to over 12 years in federal prison for defrauding Gold Star families out of millions of dollars. This egregious crime exploited the survivors of fallen service members—those who have already paid the ultimate price—by taking advantage of their grief and vulnerability.

The Scheme Unfolds

From May 2018 to November 2022, Craffy operated as an Army Civilian financial advisor, counseling families who had lost loved ones in military service. These grieving Gold Star families were led to believe that Craffy’s financial guidance was sanctioned by the Army when, in fact, he was acting out of self-interest. Craffy encouraged these families to transfer their survivor benefits into investment accounts he privately managed in a second job totally unrelated to the United States government. 

When the dust cleared, investigators determined that Craffy pocketed $1.4 million dollars in a scam that lost twenty-four gold star families, a total of $3.7 million dollars. In his official duties with the Army, Craffy was only supposed to give grieving families basic financial advice. However, he took advantage of their grief and directed them to his second job, where the theft would occur.

According to court documents, many families mistakenly thought their investments were protected by Army oversight, but instead, Craffy conducted unauthorized trades and engaged in high-risk strategies that were unsuitable for the family’s needs.

According to The Washington Post, Bevard’s widow handed over about $370,000 to Craffy for him to invest with hopes that it would grow over time and she could use the funds for expenses related to raising their children. Instead, her balance dwindled over time by over $100,000. Understandably, Natasha was quite concerned. She had the following text exchange with Craffy who told her, in all caps, “Don’t look at any statements.”

Mrs. Bevard said what hurt her the most was the fact that the money was supposed to be for her children.

Legal Repercussions and Sentencing

In April 2024, Craffy pleaded guilty to multiple charges, including 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. On sentencing him to 151 months in prison, U.S. District Judge Georgette Castner highlighted the gravity of Craffy’s betrayal and the devastating impact on his victims. In addition to his prison term, Craffy was ordered to forfeit the $1.4 million he had earned in commissions. Further restitution to the defrauded families is to be determined.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Craffy for his unauthorized trading activities and excessive trading strategies that exposed clients to unnecessary risk. The SEC’s complaint detailed how Craffy manipulated grieving family members into transferring their benefits into brokerage accounts he managed privately, which resulted in both realized and unrealized losses amounting to nearly $3.6 million.

Impact and Outrage

The case against Craffy drew sharp condemnation from military and law enforcement officials. Attorney General Merrick Garland stated, “Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime.” This sentiment was echoed by several other officials involved in the investigation, who emphasized that those who exploit their positions of trust to prey on grieving military families will be held accountable.

The defrauded families were supposed to receive not just monetary benefits but also respect, compassion, and a sense of security from a grateful nation. Instead, they found themselves further victimized by someone entrusted to help them. The Gold Star families were already grappling with the immeasurable loss of a loved one, and the financial devastation caused by Craffy’s fraudulent actions added insult to injury.

US Attorney Philip R. Sellinger had this to say about Craffy’s abuses:

“Caz Craffy was sentenced to prison today for brazenly taking advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, when they were dealing with a tragedy born out of their loved one’s patriotism. These Gold Star families have laid the dearest sacrifice on the altar of freedom. And they deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. No amount of money can undo their enormous loss. Instead of offering guidance, Caz Craffy chose to defraud these heroic families. The lengthy term of imprisonment imposed today is just punishment for this heinous and shameless crime.”

A Call for Greater Oversight

This case underscores the urgent need for stricter oversight and accountability measures in financial services provided to military families. The Army should have been aware of Craffy’s second job and immediately noted the potential for a serious conflict of interest. 

Craffy was blatantly greedy and did not bother to hide the fruits of his ill-gotten gains.

The fallout from Craffy’s actions has sparked discussions in Congress about potential reforms to prevent similar incidents from occurring in the future. There are calls for more stringent background checks, regular audits, and clear communication with families about the official scope of financial advisors’ roles within military support programs. Many families of the victims believe the Army is at least partially to blame. They note that casualty assistance officers would routinely funnel Gold Star families to Craffy. The Army defended itself by saying they conducted “a thorough criminal investigation” and found this to be an isolated incident. 

Moving Forward

While Craffy’s sentencing brings some measure of justice, the emotional and financial toll on his victims is a lasting reminder of the depths of his betrayal. The military community continues to rally around the affected families, offering support and advocating for reforms to ensure that no other family has to endure such exploitation. As the legal proceedings continue, particularly regarding restitution and the SEC’s civil case, the hope is that these families will see a complete measure of justice served. In reality, one wonders how this convicted felon who will be spending at least the next 12 years in federal prison could ever possibly begin to pay them back.

In the wake of this scandal, the commitment of the vast majority remains strong to protect those who serve and their families, ensuring they are treated with the respect and dignity they have undoubtedly earned through their sacrifices.

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Disclaimer: SOFREP utilizes AI for image generation and article research. Occasionally, it’s like handing a chimpanzee the keys to your liquor cabinet. It’s not always perfect and if a mistake is made, we own up to it full stop. In a world where information comes at us in tidal waves, it is an important tool that helps us sift through the brass for live rounds.