Fashion Tech CEO Accused of $300M Fraud: A Cautionary Tale for Investors

Christine Hunsicker, the former CEO of CaaStle Inc. and P180, has been released on a $1 million bail after pleading not guilty to charges of defrauding investors of over $300 million. The indictment, filed in Manhattan federal court, accuses Hunsicker of forging documents, fabricating audits, and misrepresenting her company's financial health to lure investors.

The Allegations

• Hunsicker allegedly portrayed CaaStle as a high-growth company with substantial cash reserves, despite knowing it was in significant financial distress.
• She is accused of providing investors with falsified financial statements, including inflated income reports and fake audited financials.
• One instance highlighted in the indictment claims Hunsicker told an investor that CaaStle had an operating profit of nearly $24 million in Q2 2023, when the actual figure was less than $30,000.

The Fallout

• CaaStle filed for Chapter 7 bankruptcy last month, leaving investors with worthless shares.
• Hunsicker was removed from the board in December 2024 and resigned as CEO in March 2025.
• The SEC has also filed a civil lawsuit, alleging that Hunsicker's "fake financials" misled investors about the company's readiness for an IPO or sale.

Defense's Stance

Hunsicker's lawyers argue that the indictment presents a "distorted picture" and that she has been cooperative and transparent with authorities. They promise to reveal "much more to this story" in due course.

A Rising Star's Downfall

Before the fraud allegations, Hunsicker was celebrated as a rising star in the fashion tech industry, earning spots on prestigious lists like Crain’s New York Business "40 under 40" and Inc.'s "Most Impressive Women Entrepreneurs".