Army Financial Counselor Pleads Guilty to Defrauding Gold Star Families of Death Gratuity, Life Insurance Money

A financial counselor for the Army's Casualty Assistance Center in New Jersey pleaded guilty Monday to wire and securities fraud in a scheme that bilked Gold Star families out of the money awarded them after the death of their service member.

Caz Craffy, who also went by Carz Craffey, was responsible for educating surviving family members on the financial benefits they receive: a $100,000 death gratuity and life insurance of up to $400,000.

Instead of simply advising the families, Craffy, who also was employed with two different financial investment firms, used his position to identify families and encouraged them to invest in accounts with the firms. He misled them into thinking that the money management was part of the Army's benefits and was service-approved, according to the Justice Department.