Former CaaStle CEO Christine Hunsicker Charged $300M Fraud Scheme

Christine Hunsicker, founder and CEO of the fashion rental startup CaaStle, has been indicted on multiple charges including wire fraud, securities fraud, money laundering, making false statements to financial institutions, and aggravated identity theft related to defrauding investors of over $300 million. Despite CaaStle's financial distress and bankruptcy filing in June, Hunsicker allegedly misrepresented the company’s financial health by overstating revenues by more than 7,300% and fabricating documents, audits, and bank records to portray a thriving business valued at over $1.4 billion. The indictment reveals that these deceptive actions continued even after she was removed from CaaStle’s board and her electronic devices were seized. U.S. Attorney Jay Clayton and FBI officials have publicly condemned her alleged misconduct as a serious breach of investor trust, emphasizing the risks tied to exaggerated claims by pre-IPO tech companies. Hunsicker surrendered to authorities and pleaded not guilty, with her legal team asserting that there is more to the story and pointing to her cooperation with the U.S. Attorney's Office and SEC. She faces up to 30 years in prison if convicted, with ongoing federal and state lawsuits also pending.