A former financial counselor for the U.S. Army was charged Thursday with 10 counts, including wire and securities fraud, after he allegedly defrauded grieving military families out of life insurance payments for their dead loved ones, The Washington Post reported.
Caz Craffy allegedly stole life insurance payments from two dozen Army families totaling six figures while he moonlighted as a broker.
"Federal investigators said the families’ accounts shrank by $3.4 million due to market losses and $1.4 million in commissions paid to Craffy," The Post's report stated.
In addition, a civil complaint against Craffy was filed by the Securities and Exchange Commission “seeking permanent injunctions, disgorgement of allegedly ill-gotten gains, plus interest, and civil penalties."
The SEC accuses Craffy of violating the antifraud provisions of the federal securities laws and the “best interest” standard for broker-dealers. In "one particularly egregious offense,” Craffy is alleged to have "misappropriated $50,000 from the IRA account of a minor child whose parent had died on active duty," the filing read.
“Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime,” Attorney General Merrick Garland said in a written statement.
Read the full report at The Washington Post.
