Fashion startup founder charged with $300M fraud freed on $1M bail
NEW YORK (AP) – Former General Manager of two clothing technology companies, in the last six years after the accusations he claimed to have deceived over $ 300 million, he was released on Friday with a bail of $ 1 million on Friday.
New Jersey, 48 -year -old Christine Hunsicker from Lafayette, Manhattan Federal Court indictment in the indictment of fraud, aggravated identity theft and false declaration accusations were accused of six points.
US lawyer Jay Clayton, Hunsicker has established documents, produced inspections and company’s Caastle Inc. and said that he had misrepresented an important misconception about his financial situation to defraud investors in the P180.
The indictment said that Hunsicker was once described as a storey fashion entrepreneur, and when he knew that Caastle had faced significant financial difficulties, high growth depicted as a private company.
In a statement, defense lawyers Michael Levy and Anna Skotko said that prosecutors chose to offer a missing and distorted picture in the public’s indictment ”.
“There is much more in this story and we look forward to saying that, iler they said.
Hunsicker did not comment when leaving Skotko after leaving Skotko after entering a innocent objection and accepting the rules of $ 1 million bail, which includes the old or existing investors or employees.
According to the indictment, Hunsicker continued his fraudulent plan even after the Caastle Board of Directors has removed it and forbade him from investing or taking other measures on behalf of the company.
The indictment, even after the law enforcement officers confronted him on fraud, “insisted on his plan,” he said.
Before the allegations of fraud, Hunsicker seemed to be a rising star in the fashion world after he was selected for Crain’s “Under -40 -year -old” list, he was chosen as one of Inc.’s “most impressive women entrepreneurs ve and was known as one of the national retail federation.
The indictment is worth $ 1.4 billion by Caastle Hunsicker at a time when the enterprise is financially troubled with limited cash and significant expenses.
Prosecutors claimed that Hunsicker lied to investors in February 2019 and prosecutors continued to do so.
They told investors that they had false inflated income statements, false -controlled financial statements, imaginary bank account records and false corporate records.
Allegedly, in August 2023, an investor said that Caastle reported an activity profit of approximately $ 24 million in the second quarter of 2023.
The indictment claimed that before the P180 was set up last year, it was a majority of fraud by serving the 275 million dollars of Caastle investors to instill with cash money before discovering the frauds of its investors.
The indictment said that the P180 investors deceived approximately $ 30 million with wrong declarations and negligence.
He said that Caastle had applied for 7 bankruptcy last month and left hundreds of investors with Castle shares that are no longer worthy. In December, Hunsicker had to resign from the Caastle Board of Directors and officially resigned as General Manager in March.
In a relevant civilian file, SEC said that Hunsicker said that the “fake financies” of Caastle approached the first public offering or sales because he started a new increase in income after starting a new money -making model called “Service as a Service”.
“In fact, Caastle’s income was decreasing, his losses were increasing, and the company was never profitable,” he said. “He did not receive monthly, three -month or annual Caastle financial statements from Hunsicker, an existing or potential Caastle investor.”
