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USA Today
14 hours ago
- Business
- USA Today
Startup founder Christine Hunsicker accused of defrauding investors out of $300M
The founder of a fashion tech startup has been indicted for allegedly defrauding investors out of more than $300 million, authorities announced July 18. Christine Hunsicker, the founder of clothing tech company CaaStle, has been charged with wire fraud, securities fraud, money laundering, making false statements to a financial institution and aggravated identity theft, according to a press release from the U.S. Attorney's Office for the Southern District of New York. The founder allegedly falsely promoted CaaStle as a growing business valued at more than $1.4 billion in order to secure more funding from investors. In reality, the company "was in financial distress with limited cash and significant expenses," according to the indictment. Hunsicker's attorneys, Michael Levy and Anna Skotko, said in a statement that Hunsicker has "been fully cooperative and transparent" with authorities, but they "nonetheless have chosen to present to the public an incomplete and very distorted picture." "There is much more to this story, and we look forward to telling it," the statement said. Startup founder gave fake documents to investors, officials say According to the indictment, Hunsicker falsified documents and lied to investors about the financial state of the company beginning in 2019. These allegedly documents included "falsely inflated income statements, fake audited financial statements, fictitious bank account records, and sham corporate records." On one occasion, according to the indictment, an audit firm confronted Hunsicker about a fake review she provided to an investor. She said she created the audit for a lecture at Princeton University and mistakenly sent it to the investor. But the lecture didn't exist, authorities say. After surrendering on July 18, Hunsicker pleaded not guilty and was released on $1 million bond, court records show. What is CaaStle? Fashion startup files for bankruptcy amid founder's arrest CaaStle promotes itself as "a catalyst for brands and retailers to propel digital growth and profitability across their business," according to its website. "We help creators launch their own clothing rental services," its Instagram account says. Hunsicker resigned from CaaStle and another company she owned, P180, in March after CaaStle's board of directors told its investors that she had falsified documents, per the indictment against her. It also said CaaStle filed for Chapter 7 bankruptcy in June. Attorney warns investors about fraud Jay Clayton, U.S. attorney for the Southern District of New York, warned investors in a statement to "be aware" about potential fraud schemes tied to businesses that haven't issued an initial public offering. "The promise of pre-IPO technology companies can be fertile ground for fraudsters who play on investor euphoria," Clayton said. "Investors should be aware of these incentives and that pre-IPO companies are not subject to the rigors of SEC registration." More: Want to invest in an IPO? Here's what you need to know to profit on initial public offerings Melina Khan is a national trending reporter for USA TODAY. She can be reached at
The Hill
a day ago
- Business
- The Hill
Megabill takes a bite out of US climate progress
Models of the legislation that have emerged in recent weeks show U.S. emissions will rise as a result of its implementation. One model from climate think tank C2ES found U.S. emissions will increase by 8 percent more than they would have been otherwise as a result of the package. 'An 8 percent increase in our emissions is … still a massive amount of emissions,' said Brad Townsend, the group's vice president for policy and outreach. Taking into account all of the efforts to reduce U.S. emissions over the last 20 years, Townsend said, the bill represents 'rolling back a third of that progress with a stroke of a pen.' The Trump-backed measure both repeals spending aimed atreducing emissions that had been passed by Democrats and creates more opportunities for planet-warming fossil fuels. A refresher: Its most significant provisions repeal tax credits for climate-friendly energy technologies, including wind and solar energy, as well as electric vehicles. It also repeals programs that would have paid for low-carbon and anti-pollution projects, including in underserved neighborhoods. It includes tax breaks for oil, gas and coal and opens up more opportunities to drill on public lands and offshore. A model from Princeton University finds that without the 'big, beautiful bill,' the U.S. would cut its planet-heating emissions by 32 percent by 2035. With the bill, emissions are expected to only drop by 25 percent compared to where they were in 2005. If Biden-era policies remained in place, including not only the tax credits but also regulations, emissions would drop between 40 percent and 44 percent, the model finds. A model from the Rhodium Group found that without the bill, emissions would be 31 percent to 51 percent lower in 2035 when compared to 2005. Now, they'll only drop by between 27 percent and 44 percent during that period. Ben King, the lead author of the analysis, said this is a 'pretty substantial difference' — saying it's about 575 million extra metric tons of carbon dioxide in the year 2035 alone. That's the equivalent of putting an additional 134 million gas-powered cars on the road for a year.
India.com
2 days ago
- Business
- India.com
Mukesh Ambani and Nita Ambani's bahu Shloka Ambani reveals how she built her NGO using chaos and...
Shloka Ambani, daughter of diamond magnate Russell Mehta and wife of Akash Ambani, son of business tycoon Mukesh Ambani and Nita Ambani, has carved a distinct identity as a social entrepreneur. Educated at Princeton University and the London School of Economics, she chose to channel her efforts into philanthropy upon returning to India in 2014. Her early experiences with NGOs highlighted a disconnect between willing volunteers and organizations in need, inspiring her to co-found ConnectFor with childhood friend Maniti Shah. What did Shloka Ambani plan with Maniti Shah? ConnectFor, often described as a ' for volunteering,' aims to bridge this gap by connecting volunteers with non-profit organizations. The initiative began modestly, with Shloka and Maniti using a whiteboard to outline their plan: identify 15 volunteers, connect with 10 NGOs, and facilitate meaningful engagements. Their hands-on approach included visiting over 100 NGOs in 20 days, emphasizing their commitment to understanding the sector's needs firsthand. Used to work with During a conversation on Masoom Minawala Show, Shloka said, 'The smaller ones were really excited about our idea, and one of the first NGOs we signed, used to work with sexually exploited workers, and we were excited that they came on board. They needed 10 or 15 volunteers for everything. From working on their website to coming out and taking classes on weekends, they needed people with different skillsets. When we couldn't find a volunteer like I volunteer, I would go and teach them creative writing.' Over the years, ConnectFor has facilitated over 18,000 hours of volunteering, collaborated with more than 1,000 NGOs, and partnered with 120 corporates and 150 student groups across India. This has resulted in an estimated savings of Rs 21 crore for dedication extends beyond her professional endeavors. As a mother of two, she emphasizes the importance of leading by example. She often tells her children, 'Mama has to go to the office,' instilling in them the value of personal growth and responsibility. Her journey underscores the impact of purpose-driven work and the importance of bridging gaps in the social sector. Through ConnectFor, Shloka Ambani continues to inspire a culture of volunteering and community engagement in India.
The Hill
2 days ago
- Business
- The Hill
Trump bill takes a ‘big, beautiful' bite out of US climate progress
The ' big, beautiful bill ' is expected to make a major dent in the U.S.'s climate progress, adding significantly more planet-warming emissions to the atmosphere. Models of the legislation that have emerged since its passage earlier this month show that U.S. emissions will rise as a result of its implementation. One from climate think tank C2ES found that U.S. emissions will be 8 percent more than they would have been otherwise as a result of the package. 'An 8% increase in our emissions is … still a massive amount of emissions,' said Brad Townsend, the group's vice president for policy and outreach. Townsend said that taking into account all of the efforts to reduce U.S. emissions over the last 20 years, the bill represents 'rolling back a third of that progress with a stroke of a pen.' 'From an emissions perspective, this bill is a disaster,' he said. The Trump-backed measure both repeals spending aimed at reducing emissions that had been passed by Democrats and creates more opportunities for planet-warming fossil fuels. Its most significant provisions repeal tax credits for climate-friendly energy technologies including wind and solar energy, as well as electric vehicles. These tax credits in particular were considered a massive step toward reducing emissions when they passed in 2022 as part of the Democrats' Inflation Reduction Act. It also repeals programs that would have paid for low-carbon and anti-pollution projects, including in underserved neighborhoods. On fossil fuels, the legislation includes tax breaks for oil, gas and coal and opens up more opportunities to drill on public lands and offshore. Since President Trump signed the bill on July 4, several models have indicated that provisions such as these will take a bite out of efforts to reduce U.S. emissions. One model, from Princeton University, finds that without the 'big, beautiful bill' the U.S. would cut its planet-heating emissions by 32 percent by 2035. With the bill, emissions are expected to only drop by 25 percent compared to where they were in 2005. If Biden-era policies remained in place, including not only the tax credits but also regulations, emissions would drop between 40 and 44 percent, the model finds. A slightly more optimistic model from the Rhodium Group found that without the bill, emissions would be 31 percent to 51 percent lower in 2035 when compared to 2005. Now, they'll only drop by between 27 and 44 percent during that period. Ben King, the lead author of the analysis, said that this is a 'pretty substantial difference' — saying it's about 575 million extra metric tons of carbon dioxide in the year 2035 alone. That's the equivalent of putting an additional 134 million gas-powered cars on the road for a year. The model projects that as a result of the bill, the number of new green energy projects on the grid between 2025 and 2035 will be 53-59 percent lower than it otherwise would have been. The Biden administration set a goal of cutting U.S. emissions by at least half by 2030. The Trump administration has not set its own climate goals, and the president has repeatedly downplayed the impacts of climate change and sought to bolster planet-warming fossil fuels. Climate change refers to the heating of the Earth's atmosphere, which is driven by human activities including fossil fuels and agriculture. This phenomenon makes extreme weather more frequent and intense. Over the past few decades, U.S. emissions have been declining amid a shift away from coal-fired power. The bill passed around the same time that the U.S. is seeing instances of extreme weather including recent heat waves and devastating flooding that has killed more than 130 people in Texas. While the U.S. is just one country, King noted that 'every extra ton of greenhouse gas in the atmosphere has some impact on the likelihood of extreme weather.'
Fashion Network
2 days ago
- Business
- Fashion Network
Clothing tech entrepreneur Christine Hunsicker charged with $300 million fraud in US
A prominent entrepreneur who founded the now-bankrupt clothing technology startup CaaStle was criminally charged on Friday with defrauding investors out of more than $300 million, the U.S. Department of Justice said. Authorities said Christine Hunsicker, 48, of Lafayette, New Jersey, promoted CaaStle to investors as a more than $1.4 billion "Clothing-as-a-Service" business that helped companies rent apparel to consumers with an option to buy, despite knowing it was financially distressed and short of cash. The alleged fraud spanned six years starting in 2019, three years after the Princeton University alumna was named one of Inc magazine's "Most Impressive Women Entrepreneurs" and Crain's New York Business' "40 Under 40." Hunsicker was charged in a six-count indictment with wire fraud, securities fraud, money laundering, making false statements to a bank and aggravated identity theft. She turned herself in to authorities, and could face decades in prison if convicted. The Securities and Exchange Commission filed a related civil lawsuit. In a joint statement, Hunsicker's lawyers Michael Levy and Anna Skotko said the indictment presented "an incomplete and very distorted picture," despite their client being "fully cooperative and transparent" with prosecutors. "There is much more to this story, and we look forward to telling it," the lawyers added. Authorities said Hunsicker falsified CaaStle's financial statements and bank records to raise capital. This included alleged representations that CaaStle earned $66.3 million on revenue of $439.9 million in 2023, when it actually lost $81 million on revenue of $15.7 million. Hunsicker was also accused of falsely telling investors their money would go toward buying discounted shares from existing shareholders who needed liquidity, including after the 2022 collapse of the FTX cryptocurrency exchange. In one instance, Hunsicker allegedly raised more than $20 million after forging a CaaStle director's signature authorizing the issuance of stock options to an investor. Prosecutors said Hunsicker fraudulently raised more than $275 million for CaaStle and $30 million for a related venture, P180. CaaStle filed for Chapter 7 bankruptcy liquidation in Delaware on June 20. "The promise of pre-IPO technology companies can be fertile ground for fraudsters who play on investor euphoria," U.S. Attorney Jay Clayton in Manhattan said in a statement.
