Ex-army monetary counselor pleads responsible to life insurance coverage fraud scheme

Caz Craffy, a former Military monetary counselor, pleaded responsible on Tuesday to defrauding households of deceased troopers. The plea was entered in a federal court docket, with Craffy accepting accountability for orchestrating a scheme that pilfered hundreds of thousands from life insurance coverage funds meant for grieving widows and youngsters.

The Justice Division revealed that Craffy, 41, of Colts Neck, New Jersey, manipulated his place to direct purchasers to a brokerage agency the place he labored part-time. In line with the Washington Submit, over 4 years, he managed the accounts of two dozen households, resulting in complete losses of $3.7 million, from which he earned roughly $1.4 million in commissions. The prison actions started in 2018, shortly after his appointment as a survivor outreach monetary counselor.

Charged with 10 counts, together with wire and securities fraud, Craffy now faces a possible jail sentence of eight to 10 years as per his plea settlement. The sentencing, scheduled for August, will even handle restitution quantities. Initially, he confronted a for much longer sentence if the case had gone to trial.

Lawyer Common Merrick Garland emphasised the federal government’s stance on such crimes, stating, “Those that goal and steal from the households of fallen American servicemembers might be held accountable for his or her crimes.”

Bereaved households experiencing extra losses

The prosecution asserted that Craffy exploited his military-sanctioned function to achieve the belief of bereaved households, persuading them to make high-risk investments with devastating outcomes. Households concerned reported substantial monetary losses, with particular person quantities starting from $6,300 to over $375,000.

This plea resolves a part of a broader controversy uncovered by a Washington Submit investigation final yr, which led to elevated legislative scrutiny and subsequent reforms. In response to the exposé, Congress handed laws mandating stricter vetting of navy monetary counselors.

Regardless of the authorized closure, some victims stay dissatisfied with the result. Sharon Hartz, whose son Sgt. Thomas F. Anastasio died in 2019, met Craffy below the pretense of prudent monetary planning. As an alternative, her household’s investments dwindled by $200,000 below his steerage.

“The best way he destroyed so many lives…I don’t assume that’s sufficient for what he did. I don’t assume that’s justice,” Hartz stated after the listening to.

Analysis of oversight

The case has prompted a reevaluation of oversight inside navy monetary counseling roles. An Military official, who declined to be named, beforehand said that these counselors are supposed to present schooling and help on advantages and property planning however mustn’t affect particular funding selections.

As Craffy awaits sentencing, the US Securities and Change Fee continues its civil proceedings in opposition to him. The Military Reserve has but to announce if Craffy will face further navy disciplinary actions. Lt. Col. Addie L. Leonhardt confirmed that the matter is being taken very critically and might be addressed in accordance with Military laws and the Uniform Code of Navy Justice.

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