CaaStle founder charged with fraud, turns herself in

Christine Hunsicker, founder of the fashion startup CaaStle, turned herself in to authorities Friday to face fraud charges, authorities confirmed to Bloomberg. 

The U.S. Attorney for the Southern District of New York unsealed an indictment against her, charging her with wire fraud, securities fraud, money laundering, aggravated identity theft, and lying to financial institutions. She is accused of defrauding her investors out of more than $300 million.  

Hunsicker resigned as CEO of CaaStle after her board alleged that she misled investors about the company’s financial performance. The company raised more than $500 million in funding and filed for bankruptcy in June. 
In addition to the SEC’s case, an apparel company and an investment vehicle launched by CaaStle are also suing the company over financial matters. Two former employees told TechCrunch they weren’t surprised to hear the company faced financial troubles due to how discreet executives were about the company’s financial health.