‘Next big thing' of fashion industry arrested for alleged $300 million investor fraud
Now, Christine Hunsicker, the founder of CaaStle (once called Gwynnie Bee), a company that promised to make renting stylish clothes as easy as streaming a movie on Netflix, has been arrested on fraud charges, accused of deceiving investors out of a jaw-dropping $300 million.
According to prosecutors in New York, Christine's success story was built on a web of lies. They say she faked documents, invented financial audits, and spun tales about CaaStle's booming revenue and massive cash reserves—when, in reality, the company was on the verge of collapse.
'Christine Hunsicker defrauded investors of hundreds of millions of dollars through document forgery, fabricated audits and material misrepresentations about her company's financial health,' said US Attorney Jay Clayton, laying out the allegations, ABC News reported.
The timing couldn't be worse. CaaStle had just filed for Chapter 7 bankruptcy, meaning it was shutting down for good.
Prosecutors argue the company's failure wasn't just a bad business model—it was Christine's alleged pattern of deception that sank it. They claim she told investors the company was raking in hundreds of millions while hiding that it was nearly broke.
Christine, 48, had once been a darling of Silicon Valley and the fashion world. Her idea of renting out trendy clothes online was a hit, and big-name brands jumped on board. But behind the glitzy marketing, things were falling apart. Even after the CaaStle board kicked her out as chair and told her to stop fundraising, she allegedly kept pitching to investors with false numbers.
By April 2025, she quietly stepped down as whispers of misconduct grew louder, followed by a wave of civil lawsuits. On Friday morning, Christine turned herself in to face a laundry list of charges: wire fraud, securities fraud, money laundering, making false statements to a bank, and even aggravated identity theft.
These could land her in prison for 20 to 30 years, with the identity theft charge alone carrying a mandatory two-year sentence.
Her lawyers, Michael Levy and Anna Skotko, aren't buying the prosecution's story. In a statement, they said Christine has been open and cooperative with investigators, and they're ready to fight back. 'Although Ms. Hunsicker has been fully cooperative and transparent with both the US Attorney for the Southern District of NY and the SEC, they nonetheless have chosen to present to the public an incomplete and very distorted picture in today's indictment. There is much more to this story, and we look forward to telling it.'
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