The founder and former CEO of fashion technology company CaaStle Inc. pled guilty to fraud in connection with a scheme to raise hundreds of millions of dollars in capital from venture investors based on falsified financials.
In a U.S. district court Wednesday, Christine Hunsicker pled guilty to one count of securities fraud stemming from a scheme to raise capital from investors for her struggling firm by misleading them about its financial condition. As part of the plea deal, she agreed to forfeit nearly US$300 million.
According to a federal indictment and other court filings, while raising capital for the business in 2023, Hunsicker provided investors with falsified financial statements, bank records and other corporate documents that “grossly overstated CaaStle’s operating profit, revenue, and available cash” — and she also sent fake audits to investors while seeking capital.
In 2024, she also raised capital from CaaStle investors for another venture, P180, relying on misrepresentations about CaaStle’s finances.
“Christine Hunsicker fashioned a massive fraud scheme, built on forged documents, fabricated audits, and material misrepresentations to hundreds of venture capital investors,” said Jay Clayton, U.S. attorney for the Southern District of New York, in a release.
Ultimately, CaaStle filed for bankruptcy protection in June 2025.
In a parallel action, the U.S. Securities and Exchange Commission filed a separate civil action in the case, seeking disgorgement, civil penalties and an officer and director ban against Hunsicker.
She is scheduled to be sentenced in the criminal case on Aug. 5.