US EditionFashion Startup Founder Charged with $300 Million Fraud
UNITED STATES, JUL 18 – Christine Hunsicker allegedly raised over $250 million by misleading investors with false financial statements, leading to CaaStle's bankruptcy and multiple fraud charges.
- On July 18, 2025, Christine Hunsicker, who established the apparel technology company CaaStle, surrendered to law enforcement in New York to face charges related to fraud.
- The charges stem from a six-year scheme starting in 2019, where Hunsicker allegedly falsified financial records and misled investors about CaaStle's performance.
- Hunsicker is accused of fabricating income statements, forging a board director’s signature in 2024, and using fake audits and bank records to raise over $300 million.
- She was indicted on multiple counts including fraudulent use of electronic communications, violations related to securities, laundering of illicit funds, falsifying bank records, and aggravated identity theft; additionally, she is subject to civil litigation and faces the possibility of a lengthy prison sentence.
- In June 2025, CaaStle initiated Chapter 7 bankruptcy proceedings, with experts noting that fraudulent schemes often capitalize on investor enthusiasm surrounding promising pre-IPO tech companies.
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48 Articles
N.J. tech fashion company founder accused of $300M fraud
The founder of CaaStle, a clothing technology business, was accused of defrauding investors out of $300 million, officials with the U.S. Attorney’s Office in the Southern District of New York said. Christine Hunsicker, 48, of Lafayette is charged with two counts of securities fraud, one count of money laundering, one count of making false statements to a financial institution and aggravated identity theft.
Founder of bankrupt clothing tech startup charged with defrauding investors out of $300M
A prominent entrepreneur who founded the now-bankrupt clothing technology startup CaaStle was criminally charged on Friday with defrauding investors out of more than $300 million, the Justice Department said.
CaaStle founder charged with fraud, turns herself in
The US Attorney for the Southern District of New York unsealed an indictment against her, charging her with wire fraud, securities fraud, money laundering, aggravated identity theft, and lying to financial institutions.
Associated Press News
Fashion startup founder charged with $300 million fraud
The former chief executive of clothing technology companies has been indicted on charges alleging that she bilked investors of over $300 million since early 2019.
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