Fashion Tech Executive Christine Hunsicker Arrested for Alleged $300 Million Investor Fraud

Christine Hunsicker, founder of the clothing rental company CaaStle (formerly known as Gwinnie Bee), was arrested on Friday on federal fraud charges accusing her of defrauding investors of $300 million. Prosecutors from the U.S. Attorney's Office for the Southern District of New York allege that Hunsicker misrepresented CaaStle's financial performance, including false revenue projections of hundreds of millions of dollars and fraudulent claims of having hundreds of millions in cash on hand, while the company was nearing collapse. The indictment further states that Hunsicker engaged in document forgery, fabricated audits, and material misrepresentations about the company's financial health. It also alleges she continued fraudulent activities and sought new capital after being removed as chair of CaaStle's board, which had barred her from soliciting investments. Hunsicker, 48, resigned in April following accusations of impropriety by the board and related civil lawsuits against her and the company. CaaStle filed for Chapter 7 bankruptcy in June. Upon her surrender to authorities on Friday morning, she was expected to appear in federal court that afternoon. U.S. Attorney Jay Clayton publicly announced the charges, highlighting the extensive nature of the fraud. Hunsicker's attorneys stated that she has been fully cooperative and claimed the indictment presented an incomplete and distorted picture of the situation.

Christine Hunsicker, founder of clothing rental company CaaStle, surrendered to authorities on Friday following her arrest on federal fraud charges. Prosecutors in the Southern District of New York allege that Hunsicker defrauded investors out of $300 million by misrepresenting the company's financial health, including fabricating revenue projections in the hundreds of millions and falsely claiming hundreds of millions in cash on hand. Hunsicker allegedly committed document forgery, fabricated audits, and made material misrepresentations to investors. After being removed as chair of CaaStle by the board and prohibited from soliciting investments, she reportedly continued fraudulent activities, attempting to raise new capital. U.S. Attorney Jay Clayton stated, "Christine Hunsicker defrauded investors of hundreds of millions of dollars through document forgery, fabricated audits and material misrepresentations about her company's financial health." Hunsicker, aged 48, resigned in April amid allegations of impropriety and civil lawsuits accusing her and CaaStle (formerly Gwinnie Bee) of elaborate fraud. The company filed for Chapter 7 bankruptcy in June. Despite co-operating with authorities, Hunsicker's attorneys claimed that the indictment presents an incomplete and distorted picture. She was expected to appear in federal court the same day she surrendered. The bail was set at $1 million according to related reports.