**Former CEO Charged with Defrauding Investors of $300 Million**
A former CEO of two clothing technology firms has been released on $1 million bail after pleading not guilty to charges of defrauding investors of over $300 million in the past six years. Christine Hunsicker, 48, from Lafayette, New Jersey, faces six counts, including fraud, aggravated identity theft, and making false statements, as outlined in an indictment filed in Manhattan federal court.
U.S. Attorney Jay Clayton stated that Hunsicker allegedly forged documents, created fake audits, and misrepresented her companies’ financial health to deceive investors in CaaStle Inc. and P180. The indictment claims that Hunsicker, once celebrated as a promising fashion entrepreneur, misled investors by portraying CaaStle as a thriving private company with ample cash reserves, despite being aware of its severe financial troubles.
Defense attorneys Michael Levy and Anna Skotko criticized the prosecution for presenting a “distorted picture” in the indictment, asserting that Hunsicker has been cooperative with authorities and the Securities and Exchange Commission. They expressed their intent to share more details about the case in the future.
After entering her not-guilty plea and agreeing to bail conditions, which include no contact with current or former investors or employees, Hunsicker did not comment as she exited the courthouse. The indictment alleges that she continued her fraudulent activities even after being removed from her position by CaaStle’s board and was prohibited from soliciting investments.
Before the fraud allegations surfaced, Hunsicker was recognized as a rising star in the fashion industry, earning accolades such as a spot on Crain’s New York Business “40 under 40” list and recognition from the National Retail Federation for her influence in retail. Despite the company’s financial struggles, Hunsicker reportedly valued CaaStle at $1.4 billion, misleading investors with inflated income statements and fictitious financial records.
Prosecutors allege that Hunsicker misled investors from February 2019 through March 2023, providing them with false financial information, including a claim of nearly $24 million in operating profit for the second quarter of 2023, when the actual profit was less than $30,000. The indictment indicates that she defrauded CaaStle investors of approximately $275 million.
**FAQ**
*What charges is Christine Hunsicker facing?*
Christine Hunsicker is facing six counts, including fraud, aggravated identity theft, and making false statements, related to allegations of defrauding investors of over $300 million.
