The U.S. Department of Justice (DOJ) is charging a fashion tech CEO for allegedly defrauding investors of hundreds of millions of dollars by lying about its profits.

In a new press release, the DOJ says it’s charging 48-year-old Christine Hunsicker of New Jersey – the CEO and founder of clothing tech firm CaaStle – with numerous crimes after she allegedly forged documents to make it appear as if the firm was financially healthy.

Authorities say that Hunsicker knew that CaaStle was in financial distress “with limited cash and significant expenses.” However, to raise more funds to operate the company, she allegedly fabricated income statements, bank records, and other documents as a means of tricking investors into thinking the firm was profitable and had cash on hand.

According to the DOJ, Hunsicker raked in a staggering $275 million for CaaStle. Some of her alleged fraudulent activities include providing an investor with fake bank account screenshots showing the company had $200 million in cash when in reality it had 1,000x less.

She also allegedly falsified the signature of a board director to make it appear that the firm’s board had authorized the grant of stock options, allowing her to raise another $20 million.

Authorities also allege that Hunsicker defrauded investors of a new business venture, P180, getting them to invest $30 million by using fake information about CaaStle’s success.

All in all, Hunsicker allegedly raised more than $300 from fraudulent practices.

As stated by US Attorney Jay Clayton,

“As alleged, Christine Hunsicker defrauded investors of hundreds of millions of dollars through document forgery, fabricated audits, and material misrepresentations about her company’s financial condition.

The promise of pre-IPO (initial public offering) technology companies can be fertile ground for fraudsters who play on investor euphoria. Investors should be aware of these incentives and that pre-IPO companies are not subject to the rigors of SEC registration.”

Hunsicker is charged with aggravated identity theft, wire fraud, securities fraud, money laundering, and making false statements to a financial institution. If convicted, she faces decades behind bars.

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A Nebraska-based investment advisor faces up to 30 years in prison after admitting he’s behind an attempted $45.65 million fraud against financial institutions.

Jesse Hill, 35, has pleaded guilty to conspiracy to commit bank fraud and will be sentenced in September, according to the U.S. Attorney’s Office for the District of Nebraska.

Hill and an unnamed individual who worked in the real estate industry partnered up in 2020 and attempted to secure loans from financial institutions throughout Nebraska and western Iowa. The loans were pursued in the name of the unnamed individual, who died in 2022, as well as that person’s business entities.

The U.S. Attorney says Hill falsely claimed that the unnamed individual was a client of his and provided fake information about funds the individual held in his investment vehicles.

“Hill would falsely represent that no other financial institution had a security interest in these fictitious accounts. Throughout the process of obtaining or attempting to obtain the loans, Hill and Individual 1 would engage with each financial institution to facilitate the loan process to include meeting with the financial institution in person, communicating by telephone, communicating by text message, or communicating by email. Hill knew that the representations being made to the financial institutions in order to obtain loans by Individual 1 and/or Individual 1’s entity were false and were being done with the intent to defraud.”

Hill and the individual attempted to secure $45.65 million in loans from at least 19 different financial institutions.

Most of the defrauded funds were directed into a failed investment scheme, as well as a property in Puerto Rico and an ownership stake in a private plane.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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