XPost: alt.fan.rush-limbaugh, ny.politics, talk.politics.misc
XPost: alt.fraud, sac.politics

Christine Hunsicker, the founder of clothing-rental company CaaStle, was arrested Friday on federal fraud charges accusing her of cheating
investors out of $300 million.

Federal prosecutors for the Southern District of New York said that
Hunsicker misrepresented CaaStle’s financial performance to investors, allegedly making false revenue projections of hundreds of millions of
dollars and falsely claiming to have hundreds of millions of dollars in
cash on hand when in truth, according to prosecutors, the company was
nearing 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,” U.S. Attorney
Jay Clayton said in Friday's announcement, in part.

The indictment also alleges that Hunsicker "continued her fraudulent
activities and attempted to raise new capital" even after CaaStle's board removed her as chair "and prohibited her from soliciting investments."

"Although Ms. Hunsicker has been fully cooperative and transparent with
both the U.S. 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," said a statement Friday from
Hunsicker's attorneys, Michael Levy and Anna Skotko.

Hunsicker, 48, resigned in April after CaaStle’s board accused her of impropriety, and civil lawsuits accused her and the company of elaborate
fraud. The company, formerly known as Gwinnie Bee, filed for Chapter 7 bankruptcy in June.

Hunsicker surrendered to authorities Friday morning and was expected to
appear in federal court Friday afternoon, according to the announcement.

The indictment is a startling development for a once-celebrated executive
who previously boasted of partnering with Ralph Lauren, Ann Taylor, Banana Republic and other major brands to offer consumers rental services.

The indictment charges Hunsicker with one count of wire fraud, two counts
of securities fraud, and one count of money laundering, each of which
carries a maximum sentence of 20 years in prison. She's also charged with
one count of making false statements to a financial institution, which
carries a maximum sentence of 30 years in prison, and aggravated identity theft, which carries a mandatory sentence of two years in prison.

https://abcnews.go.com/US/fashion-tech-executive-arrested-alleged-300- million-fraud/story?id=123870587

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