How the US military fails families
In a tragic turn of events, Gold Star families, already grappling with the loss of their loved ones, found themselves victims of a financial scam orchestrated by Caz Craffy, an Army financial counselor. Craffy, an Army reservist tasked with helping these families manage their benefits, exploited his position to defraud them of millions of dollars.
Sharon Hartz, whose son, a 26-year-old Army sergeant, died from a heart condition, was told she would receive a death benefit and life insurance totaling half a million dollars. The Army's casualty assistance officer directed her to Craffy, who presented himself as a friendly and charismatic financial advisor. Instead, Craffy used his position to deceive Hartz and numerous other Gold Star families, siphoning their funds into high-commission investments that quickly lost value. Hartz lost over $200,000, severely impacting her financial stability and her ability to retire, leaving her feeling betrayed and embarrassed.
Craffy, who also worked as an investment manager in his civilian life, violated Army regulations by handling the families' investments directly. He misled them about their investment profiles, often listing them as aggressive investors despite their preferences for conservative strategies. Natasha Cruz-Bevard, another victim who lost her husband, Staff Sergeant Rodney Bevard, to suicide, handed over $500,000 to Craffy, only to see significant losses and exorbitant commissions eat away at her funds. Cruz-Bevard lost close to $260,000, deeply affecting her financial situation.
Craffy’s deceit extended beyond financial mismanagement; he built personal relationships with the families, gaining their trust and urging them to rely on him for financial decisions. Prosecutors revealed that he persuaded them not to scrutinize their financial statements, assuring them that any losses would eventually be offset by substantial gains. Craffy’s lavish lifestyle, including the purchase of a $2.1 million home, starkly contrasted with the financial turmoil he caused his victims. His actions have led to foreclosure on his property and a potential 10-year prison sentence.
Attorney General Merrick Garland emphasized that those who exploit the families of fallen service members will be held accountable. However, victims and their representatives argue that the Army must also answer for its role in allowing Craffy’s misconduct. Natalie Khawam, representing Hartz and Cruz-Bevard, criticized the Army for consistently steering families toward Craffy and failing to detect his violations. She asserted that the Army’s introduction of Craffy to vulnerable families at their lowest points constituted a severe breach of trust.
The Army, in response, stated that it had conducted a thorough investigation and found Craffy’s actions to be an isolated incident. Nonetheless, the affected families believe the Army should take greater responsibility and ensure such breaches do not occur in the future. They stress the need for better oversight and support for Gold Star families to prevent similar tragedies from happening again.
