Christine Hunsicker the founder of fashion tech company CaaStle has been charged in a fraud scheme involving more than $300 million in allegedly stolen investor funds

New York – In a major development shaking up the world of fashion technology, Christine Hunsicker, the founder and former CEO of CaaStle, has been charged in connection with an elaborate fraud scheme allegedly designed to deceive investors out of more than $300 million. Federal authorities unveiled the charges on Thursday, marking another dramatic chapter in the increasing number of cases where start-up culture and investor enthusiasm collide with fraud.

The United States Attorney for the Southern District of New York, Jay Clayton, alongside FBI Assistant Director in Charge of the New York Field Office, Christopher G. Raia, announced that an indictment against Hunsicker had been unsealed. The indictment accuses her of wire fraud, securities fraud, money laundering, making false statements to a financial institution, and aggravated identity theft. The charges stem from what prosecutors describe as a calculated and persistent scheme of deception, involving fabricated documents, false audits, and brazen misrepresentations about CaaStle’s financial health.

“As alleged, Christine Hunsicker defrauded investors of hundreds of millions of dollars through document forgery, fabricated audits, and material misrepresentations about her company’s financial condition,” said U.S. Attorney Jay Clayton. “The promise of pre-IPO technology companies can be fertile ground for fraudsters who play on investor euphoria. Investors should be aware of these incentives and that pre-IPO companies are not subject to the rigors of SEC registration. This Office is committed to protecting investors who place their trust and capital in emerging companies. We will continue to work closely with our law enforcement partners to investigate, detect, and prosecute those individuals who abuse our markets and our investors.”

According to the detailed allegations outlined in the indictment, Hunsicker presented CaaStle to potential investors as a thriving enterprise in the fashion-tech sector, boasting a valuation in excess of $1.4 billion. In reality, authorities claim, the company was grappling with serious financial troubles, lacking adequate cash reserves while burdened with mounting operational expenses. Despite this, Hunsicker allegedly orchestrated a sophisticated campaign to conceal the truth, relying on falsified income statements, fake audits, doctored bank records, and fabricated corporate documents.

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“Christine Hunsicker allegedly submitted fraudulent financial statements to swindle investors and banks of more than $300 million,” said FBI Assistant Director in Charge Christopher G. Raia. “This alleged scheme was stitched together with repeated deception and misinformation, ultimately betraying the trust of the defendant’s clients. The FBI remains committed to apprehending any business owners who implement unlawful practices to increase their personal wealth.”

The scope of the deception, as outlined by prosecutors, is sweeping. Between 2020 and 2025, Hunsicker allegedly misled investors with a series of forged financial records that painted a drastically inflated picture of CaaStle’s profitability, revenue, and liquidity. In some cases, she reportedly told investors that their funds would be used to purchase discounted shares from existing shareholders, only for it to be revealed later that those shareholders did not exist. Instead, the money was channeled directly into keeping the struggling business afloat.

One particularly audacious moment in the saga came in October 2023, when Hunsicker was confronted by an audit firm over a fraudulent audit she had shared with an investor. Instead of coming clean, she allegedly claimed the fake audit had been prepared for a lecture she delivered at Princeton University and that its transmission to an investor was a one-time mistake. Authorities, however, assert that she had in fact supplied not one, but two fake audits in an effort to secure funding.

After this episode, Hunsicker continued her campaign of deception undeterred. Prosecutors allege she provided one investor with falsified screenshots of bank accounts, portraying nearly $200 million in available cash when the actual figure was less than $200,000. The following month, she reportedly produced yet another fake draft audit for a different investor.

By 2024, Hunsicker’s alleged fraudulent activities had expanded beyond CaaStle to include a new venture called P180. Leveraging fabricated information about CaaStle’s supposed success, she raised approximately $30 million for this new enterprise. Authorities say she also went as far as forging a Board director’s signature to falsely indicate Board approval for a stock option grant, ultimately securing more than $20 million in fresh investment for CaaStle through this misrepresentation.

In addition to deceiving investors, Hunsicker is accused of lying to a bank in order to secure and retain a $20 million personal loan by submitting false financial information about her company’s finances.
Despite being removed as Chair of CaaStle’s Board and prohibited from soliciting further investments, Hunsicker reportedly pressed on with her fraudulent activities. In early 2025, she is alleged to have sold $8 million worth of her own shares in CaaStle and over $5 million in P180 convertible notes, failing to disclose key information about her removal from the company and ongoing legal troubles. She also allegedly attempted to sell another $19 million worth of CaaStle shares just months later in February.

In March 2025, law enforcement agents seized Hunsicker’s electronic devices as part of the ongoing investigation. Even after this, authorities claim, she continued to meet with at least one investor and discuss a fraudulent audit, concealing the fact that she was no longer authorized to sell shares and that she had been removed from her leadership role. CaaStle ultimately filed for Chapter 7 bankruptcy on June 20, 2025, bringing the company’s troubled existence to an end.

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Hunsicker, who is 48 and from Lafayette, New Jersey, now faces an array of serious federal charges. Each count of wire fraud, securities fraud, and money laundering carries a maximum sentence of 20 years in prison. The charge of making false statements to a financial institution could see her sentenced to as many as 30 years behind bars. Additionally, the aggravated identity theft charge mandates a minimum of two years in prison. While these potential sentences are severe, the ultimate outcome will depend on the court’s findings and any sentencing decisions made by the presiding judge.

Mr. Clayton commended the efforts of the FBI in bringing this case forward. He also acknowledged the assistance provided by the U.S. Securities and Exchange Commission, which has launched separate civil proceedings against Hunsicker in connection with the same alleged fraudulent activities.

The prosecution of this case is being handled by the Securities and Commodities Fraud Task Force, with Assistant U.S. Attorneys Marguerite Colson and Alexandra Rothman leading the effort.

The case against Hunsicker underscores the risks inherent in investing in fast-growing, pre-IPO companies, particularly in sectors like technology where transparency can sometimes be lacking and pressure to show rapid growth can fuel unethical behavior. The charges serve as a stark reminder that beneath the glossy presentations and soaring valuations, some companies may hide troubling realities from even their most well-heeled backers.

For now, the future of CaaStle’s remaining assets, the recovery of lost investments, and Hunsicker’s legal fate remain in the hands of the courts.