Who Is Christine Hunsicker? Celebrated Female Tech Founder Indicted in $300 Million Criminal Fraud Case
Christine Hunsicker, a once-celebrated female tech entrepreneur and founder of the clothing rental company CaaStle, is now at the center of a sweeping fraud case. The 48-year-old, who was twice honored by Inc. magazine for leading one of the fastest-growing companies in the country and featured in Crain's New York Business's "40 Under 40" list, has been charged with defrauding investors of more than $300 million. X
The US Department of Justice alleges that Hunsicker misrepresented her company, CaaStle, as a promising "$1.4 billion Clothing-as-a-Service" business even as the company was in deep financial trouble. The start-up was a collaboration with fashion retailers to provide apparel rental services and filed for Chapter 7 bankruptcy in Delaware on June 20.
The supposed fraud took place from 2019 to 2024. Prosecutors claim Hunsicker manipulated the books and inflated revenue to lure investor money. One report falsely claimed that the company made a profit of $66.3 million in 2023, when it actually lost $81 million and had revenue of just $15.7 million.
Hunsicker is charged with six counts of criminal behavior, including wire fraud, securities fraud, identity theft, and making false statements to a bank. She is in custody and could face decades in prison if convicted. The SEC has filed a related civil suit in connection with the case. U.S. Attorney Jay Clayton stated, "The promise of pre-IPO tech companies can be fertile ground for fraudsters who play on investor euphoria."
The indictment claims she issued false stock options worth over $20 million by forging the signature of a company director. She is alleged to have raised $275 million in CaaStle and $30 million in another startup called P180.
While the charges are grave, Hunsicker's attorneys contend that the indictment provides an incomplete version of the facts. They insist Hunsicker has nothing to hide and is happy to have her side heard in court. If convicted, Hunsicker faces the possibility of decades in prison.
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