SEC Charges Former U.S. Army Financial Counselor for Defrauding Gold Star Families

The Securities and Exchange Commission has charged former U.S. Army financial counselor Caz L. Craffy with defrauding Gold Star family members and others through unauthorized trading of life insurance and family survivor benefits they received after an active duty service member's death. Between May 2018 and November 2022, Craffy allegedly manipulated these grieving families to transfer their benefits into brokerage accounts he managed for his own profit. Through excessive trading and lack of diversification, Craffy caused his customers to incur over $1.64 million in commissions and fees and suffer over $3.58 million in realized and unrealized losses. The SEC is seeking permanent injunctions, disgorgement of gains plus interest, and civil penalties from Craffy. The case is being investigated by the SEC's New York Regional Office with assistance from the U.S. Attorney’s Office for the District of New Jersey, Financial Industry Regulatory Authority, Army Criminal Investigation Division, Defense Criminal Investigative Service, FBI, and Homeland Security Investigations.