United States Attorney for the Southern District of New York, Jay Clayton, along with FBI Assistant Director 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 to defraud investors in CaaStle and a related venture out of over $300 million through misleading claims and fabricated documents.
Jay Clayton stated, “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.” He emphasized the risks associated with pre-IPO technology companies and affirmed the commitment to protect investors.
Christopher G. Raia added that Hunsicker allegedly used fraudulent financial statements to deceive investors and banks out of more than $300 million. He reiterated the FBI’s dedication to pursuing business owners who engage in unlawful practices for personal gain.
The indictment alleges that Hunsicker founded CaaStle as a clothing technology business while knowing it was financially distressed. To raise capital, she provided falsified income statements and other fake documents to investors. She also misrepresented how investor funds would be used.
In October 2023, when confronted by an audit firm about a fake audit sent to an investor, Hunsicker falsely claimed it was related to a lecture at Princeton University. Despite repaying the investor to prevent exposure of her fraud, she continued her deceptive activities into 2024 and beyond.
Hunsicker faces one count each of wire fraud and money laundering; two counts of securities fraud; one count of making false statements; and aggravated identity theft. Each charge carries significant potential prison sentences if convicted.
Jay Clayton praised the FBI’s work on this case and acknowledged the assistance from the U.S. Securities and Exchange Commission which has initiated separate civil proceedings against Hunsicker.
The case is being managed by the Office’s Securities and Commodities Fraud Task Force with Assistant U.S. Attorneys Marguerite Colson and Alexandra Rothman leading the prosecution.
