Caz Craffy Investor Lawsuits

Caz Craffy Barred by SEC After Defrauding Gold Star Families of $9.9 Million

The White Law Group Continues to Investigate Claims Against Former Advisor and Army Major Caz Craffy

The Securities and Exchange Commission (SEC) has permanently barred former financial advisor and U.S. Army financial counselor Caz Craffy (also known as Carz Levinski Craffey) of Colts Neck, New Jersey, for defrauding Gold Star families of over $9.9 million. Craffy, age 42, was sentenced in August 2024 to more than 12 years in prison after pleading guilty to securities and wire fraud.

SEC Enforcement Action

On July 25, 2025, the SEC announced a settlement with Craffy, in which he consented to findings of misconduct and accepted the bar from the securities industry. The regulator’s complaint detailed how Craffy, while acting as a financial counselor to military families who had lost loved ones in service, manipulated grieving survivors into transferring their insurance and survivor benefits into accounts he secretly managed in the private sector.

The SEC also noted that Craffy was ordered to pay $4 million in restitution as part of his sentence. He was previously barred by FINRA in 2022 following allegations involving excessive trading and undisclosed outside business activities.

Craffy’s Role as a Financial Counselor

From November 2017 through January 2023, Craffy assisted Gold Star families as a U.S. Army financial counselor. During this time, he simultaneously worked for private broker-dealers, including:

• Newbridge Securities Corporation (CRD#: 104065 | Morristown, NJ)
• Monmouth Capital Management LLC (CRD#: 290248 | Point Pleasant Beach, NJ)

According to FINRA BrokerCheck, Craffy used his trusted government role to encourage families to invest their death benefits—sometimes totaling $500,000 or more—into brokerage accounts he managed. He then executed unauthorized and excessive trades, generating over $1.4 million in commissions, while the families suffered estimated losses exceeding $3.7 million.

The SEC found that Craffy engaged in highly concentrated and excessive trading in a handful of corporate stocks, making recommendations that were unsuitable and not in the best interest of his clients. The trades were unauthorized, and the clients were often unaware that their accounts were even being managed by Craffy in a private capacity.

Caz Craffy Criminal Case and Sentencing

In April 2024, Craffy reportedly pleaded guilty to six counts of wire fraud and one count of securities fraud in federal court. He was sentenced on August 22, 2024, by U.S. District Judge Georgette Castner to:

• 151 months (12 years and 7 months) in prison
• 3 years of supervised release
• $1.4 million forfeiture
• $4 million restitution (as ordered in January 2025)

The Department of Justice described Craffy’s actions as a deliberate exploitation of vulnerable families for personal financial gain.

FINRA Bar and Regulatory History

In December 2022, FINRA barred Craffy (CRD#: 5222223) from working in the securities industry after an investigation into:

• Active and excessive trading in customer accounts
• Conversion of client funds and unauthorized loans or gifts
• Undisclosed outside business activities, including SLUSA Productions and Overwatch Global Strategies

FINRA also expelled Monmouth Capital Management, one of Craffy’s former firms, for unrelated Regulation Best Interest violations.

Recovery of Investment Losses – How The White Law Group Can Help

The White Law Group is currently representing several of Craffy’s former clients in FINRA arbitration claims against Newbridge Securities, alleging:

• Negligent supervision
• Common law fraud
• Breach of fiduciary duty
• Unsuitable investments and excessive trading

Brokerage firms have a duty to supervise their financial advisors. When they fail to do so and an advisor engages in misconduct, the firm may be liable for investment losses.

The White Law Group has recovered millions of dollars for investors across the country through FINRA arbitration.

Caz Craffy – FINRA BrokerCheck Information

Caz Craffy (also reported as Craz Caffrey) was registered with the following firms:

• Monmouth Capital Management LLC (04/2021 – 11/2022)
• Newbridge Securities Corporation (05/2017 – 03/2021)
• National Securities Corporation (10/2012 – 04/2017)

He has at least one pending customer complaint alleging negligence, fraud, breach of contract, unjust enrichment, and breach of fiduciary duty.

Free Consultation

If you or someone you know invested with Caz Craffy, you may have options to recover your investment losses. For a free consultation, call the securities attorneys at The White Law Group at 888-637-5510 or visit us online at www.whitesecuritieslaw.com.

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