A former Army employee has been sentenced to more than 12 years in prison in a scheme to defraud Gold Star families of millions of dollars in life insurance payouts. Caz Craffy, 42, was a civilian financial counselor who took advantage of his position 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," a federal prosecutor said in a statement. Craffy had pleaded guilty to wire and securities fraud in April, per the Army Times, and also was ordered to forfeit commission money. His lawyer did not comment on the sentence, the Washington Post reports.
A Post investigation described:
- The job: Craffy was hired in 2017 as a survivor outreach financial counselor, assigned to help survivors with receiving their benefits and planning their estates at a time when they typically suddenly receive a lump sum of money—at that time, usually $400,000. An Army official said that position's duties "do not include recommending or choosing specific investments and investing money."
- The trust: The families said Craffy used his Army credentials to seem trustworthy and would meet them in his Army Reserve officer uniform. Some people believed the Army had authorized the investment guidance he gave them, which wasn't the case.
- The moonlighting: Craffy for years turned the families into clients for a brokerage firm where he was also working, recommending they invest insurance payouts in high-risk trades with exorbitant commissions.
- The monetary harm: The families' money was put in speculative assets and volatile stocks, prosecutors said. The losses per family ranged from $6,300 to more than $375,000, according to court records. The total loss for two dozen families was $3.7 million. Craffy collected $1.4 million in commissions for financial activity that went undetected by the Army.
- The Army's role: Victims said the Army bears responsibility for Craffy's fraud. "He worked for the Army," said Natasha Cruz-Bevard, who said she lost more than $250,000 after the death of her husband, Iraq combat veteran Rodney Bevard, a staff sergeant. The Army "should have checked on these families," she added.
- The Army's response: Army told NBC News this spring that it "conducted a thorough criminal investigation and found this to be an isolated case."
- The families' pain: "I feel taken advantage of. I'm embarrassed," said Sharon Hartz, the mother of Sgt. Thomas F. Anastasio. "We are Gold Star families," said Cruz-Bevard, "and we need to make sure that this doesn't happen again to future Gold Star families."
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