SEC v. Caz L. Craffy

Caz L. Craffy allegedly defrauded Gold Star family members and others by engaging in unauthorized trading in customer accounts and recommending excessive trades and high-risk strategies that did not match customers’ investment profiles. According to the SEC, between May 2018 and November 2022, Craffy directed grieving family members to transfer their benefits into brokerage accounts he managed while working full-time for private brokerage firms. Once the funds were transferred, Craffy allegedly engaged in unauthorized and excessive trading that exposed his customers to higher risks of loss, resulting in realized losses of approximately $1.79 million, including approximately $1.64 million in fees and commissions, most of which were paid to Craffy personally.

Summary generated from official Securities and Exchange Commission press release