Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
United States Attorney for the Southern District of New York, Jay Clayton, alongside FBI Assistant Director in Charge of the New York Field Office, Christopher G. Raia, announced the unsealing of an indictment against Christine Hunsicker. The charges include wire fraud, securities fraud, money laundering, making false statements to a financial institution, and aggravated identity theft. These charges stem from an alleged scheme by Hunsicker to defraud investors in CaaStle and a related venture out of over $300 million through false statements and fabricated documents.
"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. He emphasized the vulnerability of pre-IPO technology companies to fraud due to their lack of SEC registration rigors.
"Christine Hunsicker allegedly submitted fraudulent financial statements to swindle investors and banks of more than $300 million," stated FBI Assistant Director Christopher G. Raia. He highlighted the betrayal involved in such schemes.
Hunsicker founded CaaStle as a fashion-tech business and promoted it as a rapidly growing company valued at over $1.4 billion despite knowing its financial distress. She allegedly used falsified income statements and fake audited financial documents to secure investments totaling over $275 million.
In October 2023, when confronted about a fake audit sent to an investor, Hunsicker falsely claimed it was part of a lecture she gave at Princeton University. Despite repaying one investor to prevent public disclosure, she continued her fraudulent activities into 2024 with fake bank account screenshots and forged signatures on corporate documents.
Hunsicker extended her fraudulent activities to another venture called P180 while submitting false information about CaaStle to secure personal loans from banks. Even after being removed as Chair by CaaStle's Board in early 2025 and prohibited from soliciting investments, she continued these activities until CaaStle filed for Chapter 7 bankruptcy on June 20, 2025.
Christine Hunsicker faces multiple charges carrying significant potential prison sentences if convicted. Sentencing will be determined by the judge presiding over the case.
Mr. Clayton praised the work done by the FBI and acknowledged assistance from the U.S. Securities and Exchange Commission which has initiated separate civil proceedings against Hunsicker.
The prosecution is led by Assistant U.S. Attorneys Marguerite Colson and Alexandra Rothman under the Securities and Commodities Fraud Task Force.
