Caz L. Craffy

Attorneys at ChapmanAlbin are investigating the actions of Caz L. Craffy, also known as Carz Levinski Craffey, following allegations of defrauding military families. Craffy, who worked as a U.S. Army Financial Counselor, is accused of exploiting Gold Star families, misleading them into making unauthorized trades, and misappropriating funds to enrich himself.

From November 2017 to January 2023, Craffy worked as a full-time financial counselor at Fort Dix, helping Gold Star families who had lost loved ones in active military service. Concurrently, he held positions at private brokerage firms without disclosing these conflicts of interest to the Army. Craffy took advantage of grieving families, many of whom lacked financial sophistication, to persuade them to transfer large sums to brokerage accounts under his control. He subsequently engaged in unauthorized trading, generating large commission payments for himself while causing substantial losses for his clients.

Over the course of five years, Craffy made over 1,000 unauthorized trades in the accounts of 31 customers, many of whom were Gold Star family members. The victims, including minors, were often unaware of the trades being made in their accounts. In some cases, Craffy even discouraged his clients from reviewing their account statements to hide his unauthorized actions. These trades resulted in nearly $1.79 million in realized losses, with an additional $1.8 million in unrealized losses.

One particularly egregious act involved a 13-year-old Gold Star family member whose $50,000 in death benefits was misappropriated by Craffy. He convinced the minor’s mother to withdraw funds from the child’s Individual Retirement Account (IRA) under the false pretense of a loan, which he never repaid. This action was in direct violation of his fiduciary duty as both a financial counselor and a broker.

In addition to unauthorized trading, Craffy failed to act in his clients’ best interests, as required by Regulation Best Interest. He made high-risk investments, ignored his clients’ conservative financial goals, and engaged in excessive trading that benefitted only himself. His actions caused financial ruin for several families, who were relying on their accounts for short-term needs like education expenses and retirement.

If you or someone you know has been affected by the fraudulent practices of Caz L. Craffy, contact ChapmanAlbin today. Our experienced attorneys are committed to helping victims of investment fraud recover their losses. We offer free consultations to review your case and discuss your legal options.