COLTS NECK, N.J. -- Investigators in New Jersey say more than a dozen Gold Star military families were defrauded.
Army Reserve financial counselor Major Caz Craffy, of Colts Neck, is now facing charges.
Officials say he was supposed to help families who lost a loved one during military service.
He's accused of urging them to invest survivor benefits with firms that paid him commissions.
Now, 20 families are out $3 million.
"Craffy abused these dual positions to manipulate grieving family members into transferring their life insurance and family survivor benefits, which, as the U.S. Attorney mentioned, could be as much as $500,000 into brokerage accounts he managed," SEC Division of Enforcement Director Gurbir S. Grewal said.
Craffy faces charges of wire and security fraud and making false statements in loan applications.
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