A former Army Reserve officer who offered financial advice to military families stands accused of a deeply disturbing scheme: defrauding Gold Star families of their deceased loved ones' benefits, according to the Justice Department. The 41-year-old New Jersey resident, Caz Craffy, allegedly deceived these families, resulting in the loss of hundreds of thousands of dollars.

Attorney General Merrick Garland condemned the alleged actions, stating, "Exploiting Gold Star families, who have already sacrificed so much for our country, is a reprehensible act. As the indictment outlines, Mr. Craffy allegedly abused his position of trust as an Army financial counselor to deceive these families for personal gain."

The indictment details how, between May 2018 and January 2023, Craffy allegedly secured over $9.9 million from Gold Star families for investment purposes. He is accused of conducting unauthorized trades, leading to losses exceeding $3.4 million, while simultaneously accumulating over $1.4 million in commissions from these very accounts.

In addition to the Justice Department's charges, the U.S. Securities and Exchange Commission has also charged Craffy with violating antifraud provisions of federal securities laws and Regulation Best Interest.

Leveraging his role as a major in the Army Reserves and financial counselor, Craffy allegedly targeted Gold Star families—the immediate relatives of military personnel who died in service. These families are entitled to death benefits and life insurance, often totaling $500,000. Prosecutors contend that many families believed Craffy's financial management was officially sanctioned by the Army.

Authorities allege that after the families transferred funds into brokerage accounts, Craffy proceeded to make high-risk, unauthorized trades, resulting in substantial financial losses. Fox News Digital has contacted Craffy's attorney for comment.