Kaz Claffey pleaded guilty to defrauding a Gold Star family of $9.9 million.
A former U.S. Army financial counselor has pleaded guilty to defrauding the families of fallen service members out of life insurance proceeds, the U.S. Attorney's Office announced Tuesday.
Gold Star family members are the direct beneficiaries of service members who die while on active duty and are entitled to a $100,000 payout and up to $400,000 in military life insurance, according to the organization.
Prosecutors say Kaz Claffey, of Colts Neck, New Jersey, is guilty of obtaining more than $9.9 million from Gold Star families to invest in accounts he controlled in his personal capacity without the family's permission. acknowledged.
Claffey, a civilian in the U.S. Army who worked as a financial counselor for the Office of Victim Services, is also a major in the U.S. Army Reserve and has been in the force since 2003, prosecutors said.
Prosecutors say that from May 2018 to November 2022, the Gold Star family's accounts lost more than $3.7 million, and Claffey earned more than $1.4 million in fees.
“Those who target the families of fallen American service members will be held accountable for their crimes,” Attorney General Merrick Garland said in a press release.
“While nothing can undo the tremendous loss suffered by Gold Star families, the Department of Justice will do everything in its power to protect them from further harm,” Garland said.
On Tuesday, Claffey pleaded guilty to 10 charges, including six counts of wire fraud and one count each of securities fraud, making false statements on loan applications, acting to affect the financial interests of individuals, and lying to federal agencies. He is said to have made a statement. Press release from the U.S. Attorney's Office for the District of New Jersey.
“Today, Cas Claffey brazenly used his position as an Army financial advisor to prey on the families of our most vulnerable fallen soldiers through lies and deceit,” said U.S. Attorney Philip R. Selinger. He admitted to using the information,” he told reporters. release.
“These Gold Star families have made the most precious sacrifice on the altar of freedom, and they deserve our utmost respect and compassion, as well as a modicum of economic security from a grateful nation.” Jha said.
Mr. Claffey will make his argument before U.S. District Judge Georgette Kasner in Trenton, New Jersey, and is scheduled to be sentenced on August 21.
Prosecutors said Claffey's plea agreement calls for a sentence of eight to 10 years in prison, and the amount of restitution will be announced at sentencing.
