Christine Hunsicker, founder and chief executive officer of the fashion technology startup CaaStle, has been indicted for allegedly orchestrating a complex fraud scheme that defrauded investors of over $300 million.
On July 18, federal prosecutors unsealed an indictment revealing multiple charges against Christine Hunsicker, including wire fraud, securities fraud, money laundering, making false statements to a financial institution, and aggravated identity theft. That same day, the 48-year-old entrepreneur self-surrendered and pleaded not guilty to all charges.
The case is being prosecuted by the United States Attorney for the Southern District of New York.
Christine Hunsicker is accused of defrauding investors in two companies, CaaStle and P180, through what prosecutors describe as “false statements, misleading claims, and fabricated documents.” Prosecutors allege that the scheme was designed to attract new investments and secure personal financial benefits while both ventures were under financial strain.
According to the indictment, CaaStle was experiencing “limited cash and significant expenses” at the time Hunsicker promoted it as a high-growth company. She allegedly described CaaStle as a rapidly growing enterprise valued at over $1.4 billion. In one specific case, Hunsicker provided an investor with a falsified screenshot of a bank account that claimed to show $200 million in available cash. Prosecutors report that the actual figure was under $200,000.
In October 2023, Hunsicker was confronted by an investor over a fake audit. She responded by calling it a “one-time error,” according to the indictment. Prosecutors state that she had, in fact, provided two fake audits to the same investor and repaid the funds later to prevent public exposure of the fraud.
The indictment also alleges that in 2024, Christine Hunsicker forged the signature of a CaaStle board director to raise over $20 million. During the same period, she formed P180 and used exaggerated claims about CaaStle’s performance to raise an additional $30 million. Prosecutors claim that Hunsicker used P180 as a vehicle to bring in new funds that were then funneled to support the financially deteriorating CaaStle.
She also allegedly obtained a $20 million personal bank loan by providing false information. In total, the indictment states that Hunsicker raised more than $275 million through fraudulent means, even continuing to do so after CaaStle prohibited her from soliciting investments and after her electronic devices had been seized by law enforcement.
Christine Hunsicker has pleaded not guilty to all charges.
Her legal team, Michael Levy and Anna Skotko, issued a statement following the unsealing of the indictment:
“Although Ms. Hunsicker has been fully cooperative and transparent with both the U.S. Attorney for the Southern District of NY and the SEC, they nonetheless have chosen to present to the public an incomplete and very distorted picture in today’s indictment,” the attorneys stated.
“There is much more to this story, and we look forward to telling it,” they added.
Christine Hunsicker has not made a public statement outside of her legal team’s comments.
CaaStle officially filed for bankruptcy in June. The company had once been a rising name in the fashion rental industry, partnering with retailers and brands to offer subscription-based clothing services. Christine Hunsicker positioned the company as a white-label solution to help legacy fashion players move into recurring revenue models.
Before its collapse, CaaStle was viewed as a standout in the clothing-as-a-service market. Christine Hunsicker attracted attention for her previous leadership at Gwynnie Bee and her push to modernize retail through technology and logistics.
The indictment, however, paints a starkly different picture. It outlines a calculated effort to deceive investors, falsify documents, and misrepresent the financial health of her companies across multiple funding rounds.
Christine Hunsicker now faces serious legal consequences.
Wire fraud and securities fraud each carry a maximum sentence of 20 years. Making false statements to a financial institution carries a maximum sentence of 30 years. Aggravated identity theft includes a mandatory two-year prison term. The total number of charges and potential sentencing has raised concern among investors and corporate governance analysts watching the case.
As proceedings move forward, Hunsicker’s trial is expected to become one of the most closely followed white-collar crime cases in the startup sector this year. Her case arrives amid broader concerns about accountability, transparency, and investor protections in venture-backed startups.
Share this article:
