Christine Hunsicker, the founder and former CEO of the American clothing startup CaaStle, has been charged in a US$300 million fraud case, according to the United States Attorney’s Office for the Southern District of New York.

The charges include wire fraud, securities fraud, money laundering, making false statements to a financial institution, and aggravated identity theft.

Prosecutors allege that Hunsicker misled investors by providing falsified financial documents, including fake audits and bank records, to secure over US$275 million in investments for CaaStle.

She is also accused of raising US$30 million for a related venture, P180, using false information about CaaStle’s financial status.

The indictment claims Hunsicker misrepresented how investor funds would be used and fabricated shareholder information.

Although CaaStle’s board removed her as chair and prohibited her from soliciting investments, she allegedly continued fraudulent activities. This included selling shares and meeting with investors under false pretenses.

CaaStle filed for Chapter 7 bankruptcy on June 20, 2025.

Hunsicker, 48, surrendered to authorities on July 18, 2025, and appeared before US Magistrate Judge Jennifer E. Willis.

If convicted, she faces significant prison time, with individual charges carrying maximum sentences ranging from two to 30 years.

The case is being prosecuted by the Securities and Commodities Fraud Task Force, with assistance from the FBI and the US Securities and Exchange Commission, which has initiated separate civil proceedings.

🔗 Source: United States Attorney’s Office, Southern District of New York