United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced the unsealing of an Indictment charging CHRISTINE HUNSICKER with wire fraud, securities fraud, money laundering, making false statements to a financial institution, and aggravated identity theft. The charges in the Indictment arise from an alleged scheme by the defendant to defraud investors in the fashion technology business CaaStle and a related venture out of more than $300 million through false statements, misleading claims, and fabricated documents. HUNSICKER self-surrendered and was presented before U.S. Magistrate Judge Jennifer E. Willis. The case has been assigned to U.S. District Judge J. Paul Oetken.
"As alleged, Christine Hunsicker defrauded investors of hundreds of millions of dollars through document forgery, fabricated audits, and material misrepresentations about her company’s financial condition,” said U.S. Attorney Jay Clayton. “The promise of pre-IPO technology companies can be fertile ground for fraudsters who play on investor euphoria. Investors should be aware of these incentives and that pre-IPO companies are not subject to the rigors of SEC registration. This Office is committed to protecting investors who place their trust and capital in emerging companies. We will continue to work closely with our law enforcement partners to investigate, detect, and prosecute those individuals who abuse our markets and our investors”
“Christine Hunsicker allegedly submitted fraudulent financial statements to swindle investors and banks of more than $300 million,” said FBI Assistant Director in Charge Christopher G. Raia. “This alleged scheme was stitched together with repeated deception and misinformation, ultimately betraying the trust of the defendant’s clients. The FBI remains committed to apprehending any business owners who implement unlawful practices to increase their personal wealth.”
As alleged in the Indictment:[1]
HUNSICKER, a well-known entrepreneur and successful businessperson in the fashion-tech industry, founded and was the chief executive officer of CaaStle, a clothing technology business. While promoting CaaStle as a rapidly growing business valued at more than $1.4 billion, HUNSICKER knew that CaaStle was in financial distress with limited cash and significant expenses. To raise the capital for CaaStle’s operations, HUNSICKER provided investors with falsified income statements, fake audited financial statements, fictitious bank records, and sham corporate documents that grossly overstated CaaStle’s operating profit, revenue, and available cash. She also misrepresented to investors that their funds would be used to purchase discounted shares from existing shareholders who needed liquidity, when in fact she fabricated the existence of those shareholders and used the money as new capital for CaaStle while concealing the company’s cash needs. In total, HUNSICKER fraudulently induced more than $275 million in investments.
When confronted by an audit firm in October 2023 about transmitting a fake audit to an investor, HUNSICKER lied, falsely claiming that she had created the fake audit in connection with a lecture she gave at Princeton University, and that sending the audit to the investor had been a one-time error. In reality, HUNSICKER had provided two fake audits to the investor while soliciting an investment. She later repaid that investor to prevent the public disclosure of her fraud. Undeterred, she continued the scheme, providing an investor with fake bank account screenshots showing nearly $200 million in available cash when CaaStle had less than $200,000. One month later, in October 2024, HUNSICKER provided a different investor with a fake draft audit. In 2024, HUNSICKER also falsified the signature of a Board director to make it appear that the Board had authorized the grant of stock options to another investor, raising more than $20 million for CaaStle. Around the same time, HUNSICKER extended her fraudulent activities to a new business venture, P180, using false information about CaaStle’s success to raise approximately $30 million for P180. HUNSICKER also submitted false information about CaaStle to a bank in order to obtain and keep a $20 million personal loan.
Even after the CaaStle Board removed HUNSICKER as Chair and prohibited her from soliciting investments, she continued her fraudulent activities and attempted to raise new capital. In early 2025, she sold $8 million of her CaaStle shares and more than $5 million in P180 convertible notes without disclosing material information to investors. In February 2025, HUNSICKER attempted to sell an additional $19 million of her CaaStle shares to another investor. HUNSICKER persisted in her deceptive practices even after law enforcement agents seized her electronic devices in March 2025, continuing to meet with the investor about a fake audit without revealing its fraudulent nature, her removal from the Board, or the prohibition against her selling shares. CaaStle filed for Chapter 7 bankruptcy on June 20, 2025.
HUNSICKER, 48, of Lafayette, New Jersey, is charged with one count of wire fraud, two counts of securities fraud, and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. HUNSICKER is also charged with one count of making false statements to a financial institution, which carries a maximum sentence of 30 years in prison, and aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission, which separately initiated civil proceedings against the defendant.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Marguerite Colson and Alexandra Rothman are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
