A major in the U.S. Army Reserve has admitted to profiting from the deaths of active-duty soldiers by illegally investing some of the funds given to grieving families.
On Tuesday, 41-year-old Kaz Claffey, also known as Kaz Claffey, entered the U.S. District of Trenton, New Jersey, and pleaded guilty to six counts of wire fraud for making false statements on loan applications and one count each of securities fraud. According to some authorities, taking any action that affects a person’s financial interests or making a false statement to a federal agency. press release From the Department of Justice.
By all accounts, Claffey, a major in the U.S. Army Reserve, was a vulture preying on families of fallen military personnel, often referred to as Gold Star families. If a service member dies while on active duty, his next of kin can receive a total of $500,000, including $100,000 and up to $400,000 in life insurance benefits.
During his time as a civilian financial advisor to the U.S. Army, Claffey sought out Gold Star families and offered to help invest some of their funds in two private financial firms in which Claffey was secretly employed. . Because of his status as a major in the U.S. Army Reserve and his work in the U.S. Army, his family trusted Claffey and believed he was operating in an official Army capacity rather than as a civilian.
Claffey took full advantage of their ignorance. From May 2018 to November 2022, he convinced at least 24 Gold Star Family members to provide $9.9 million for investment purposes. daily mail report. Mr. Claffey must have been a bad investor, because the Gold Star account he was managing at the time lost nearly $3.7 million. But he still earned $1.4 million in fees, all of which was “withdrawn from his family’s accounts,” a Justice Department statement said.
The economic damage he has inflicted on vulnerable American patriots is nothing short of devastating. He lost most of the $400,000 a widow had given him — money that was supposed to go toward her child’s college fund. They also lost $50,000 that belonged to a 13-year-old girl.
Gold Star mother Sharon Hartz was already reeling from the loss of her son, Sgt.Thomas Anastasio, He said the added grief he felt after being defrauded of his money was “unimaginable.” “He disrespected me,” she said of Claffey. “He disrespected my son and my family.”
“Those who target the families of fallen American service members will be held accountable for their crimes,” said Attorney General Merrick Garland. “While nothing can reverse the tremendous loss suffered by Gold Star families, the Department of Justice is committed to doing everything in its power to protect them from further harm.”
Claffey faces a maximum sentence of more than 100 years in prison for wire fraud alone, but he is expected to be sentenced to eight to 10 years instead. As part of his plea agreement, he promised to repay the Gold Star family, including giving them the proceeds of the sale of his home. He may also face criminal charges in a military tribunal.
Claffey is scheduled to be sentenced on August 21st.
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