U.S. prosecutors unsealed a six-count indictment charging Christine Hunsicker, the founder of the bankrupt clothing-technology start-up CaaStle, with defrauding investors of more than $300 million. Hunsicker, 48, surrendered to Federal Bureau of Investigation agents in New York on Friday and was scheduled to appear before Magistrate Judge Jennifer Willis in Manhattan later in the day. According to the U.S. Attorney’s Office for the Southern District of New York, Hunsicker overstated CaaStle’s finances between 2019 and 2025, presenting the business as a $1.4 billion “clothing-as-a-service” platform while the company was cash-strapped. Prosecutors allege she furnished investors and a bank with forged audits, fictitious bank records and false income statements—claiming, for example, $66.3 million in profit on $439.9 million of 2023 revenue when the firm actually lost $81 million on $15.7 million of sales. She is also accused of forging a board member’s signature to raise more than $20 million and of diverting money to a related venture, P180. The indictment includes counts of wire fraud, securities fraud, money laundering, making false statements to a financial institution and aggravated identity theft, exposing Hunsicker to decades in prison if convicted. The Securities and Exchange Commission filed a parallel civil suit. CaaStle, which had raised more than $500 million from investors before collapsing, entered Chapter 7 liquidation on 20 June 2025.