Financial Advisor and Army Major Caz Craffy Reportedly Pleads Guilty to Defrauding Families

Caz Craffy, a U.S. Army financial counselor, pleaded guilty to multiple charges, including wire fraud and securities fraud, involving families of fallen soldiers, according to reports this week. Operating secretly, Craffy allegedly encouraged Gold Star families to invest their benefits in accounts he managed without Army authorization.

He reportedly steered over $9.9 million of their benefits into accounts he controlled, allegedly earning commissions from unauthorized trades. As a result, Gold Star families lost over $3.7 million while Craffy reportedly gained $1.4 million in commissions. Scheduled for sentencing in August, Craffy faces up to 20 years in prison for each count of wire and securities fraud, with potential fines totaling $7 million.

Indictment

In July 2023, we reported that broker Caz Craffy,  a major in the Army Reserve who also worked as a financial advisor, was indicted this week on charges he defrauded two dozen Gold Star families over five years.

Caz Craffy, also known as Carz Craffey, of Colts Neck, New Jersey was charged with six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts furthering a personal financial interest and making false statements to a federal agency, according to the US attorneys office.

From May 2018 to November 2022, Craffy allegedly obtained more than $9.9 million in death benefits from the survivors of active-duty, military service members, according to federal authorities. The complaint alleges that Craffy convinced the military families to invest the insurance money in accounts he managed in his other life as a financial advisor in the private sector.

He purportedly repeatedly executed trades, often without a family’s knowledge or authorization, earning high commissions for the trades. While Craffy profited by more than $1.4 million for himself, the families allegedly lost a total of more than $3.4 million, according to the US attorney’s complaint.

Securities Regulator Bars Caz Craffy

In December 2022, we reported that the Financial Industry Regulatory Authority (FINRA) barred  Craffy (CRD#: 5222223) from associating with any FINRA member at any time. FINRA is the self-regulator that oversees brokers and brokerage firms.

FINRA was reportedly investigating Craffy’s potential conversion of customer money, loans or gifts from customers, active trading in customer accounts, and failure to fully disclose certain Outside Business Activites (OBAs).

Caz Craffy – FINRA BrokerCheck Profile  

The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.

BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA, as well as to review their employment history, licensing status, and any regulatory actions or complaints filed against them.

According to his FINRA Broker Report, Caz Craffy (Craz Caffrey) (CRD#: 5222223) was affiliated with the following firms during his career,

04/26/2021 – 11/11/2022, MONMOUTH CAPITAL MANAGEMENT LLC (CRD#:290248), POINT PLEASANT BEACH, NJ,
B, 05/02/2017 – 03/05/2021, NEWBRIDGE SECURITIES CORPORATION (CRD#:104065), MORRISTOWN, NJ
B, 10/01/2012 – 04/13/2017, NATIONAL SECURITIES CORPORATION (CRD#:7569), MORRISTOWN, NJ

According to news reports this week, FINRA has expelled on of Craffy’s former employers, Monmouth Capital for Regulation Best Interest violations.

According to his broker report, Craffy was affiliated with the following businesses, SLUSA Productions and Overwatch Global Strategies, among others.  Craffy reportedly has one complaint pending on his record for allegations of” Negligence, Common Law Fraud, Breach of Contract, Breach of Fiduciary Duty, Unjust Enrichment.”

Recovery of Investment Losses 

The White Law Group is investigating potential securities claims involving Caz Craffy and the liability his employers may have for failure to supervise him. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.  We represent investors in all 50 states including New Jersey. Our attorneys have recovered millions of dollars from many brokerage firms in the past.

If you are concerned about your investments with Caz Craffy, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.