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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New Zelle restrictions roll out at JPMorgan Chase, Wells Fargo rejects a customer’s $60,000 plea for assistance, and a Bank of America customer battles an erroneous report of his demise.

JPMorgan Chase Rolls Out Zelle Restrictions

JPMorgan Chase has officially launched new payment restrictions designed to stop fraud on the peer-to-peer payments platform Zelle.

The bank says moving forward, it may at its discretion block any payment that appears to stem from social media contacts, online marketplaces and social media messaging apps, noting Zelle is designed for payments between friends, family and trusted associates.

Chase also says payments on Zelle are not covered by the firm’s purchase protection policy.

Wells Fargo Refuses To Reimburse $60,000 Theft

Banking giant Wells Fargo is reportedly refusing to cover the losses of a charitable organization that fell victim to a bank impostor scam.

The Struggle of Love Foundation, a Colorado nonprofit, lost $60,000 to a scammer posing as a Wells Fargo employee after its executive director received a fraudulent message about unauthorized account activity and was tricked into transferring funds to a new account.

According to CBS News, the group realized the deception after the money was gone and the scammer ceased communication, triggering failed attempts to recover the funds through the bank and the police.

Wells Fargo says it’s denying the claim because the organization actively participated in the transaction.

Bank of America Customer Battles Fatal Error

A Bank of America customer says he’s still dealing with the fallout after the government abruptly declared his demise.

Eighty-two year-old Ned Johnson has been mistakenly declared dead by Social Security, causing his benefits to be halted and leaving him entangled in a bureaucratic mess for over two months, reports ABC News.

Ned says BofA sent a condolence letter to his wife in February and began deducting Social Security benefits from his checking account as requested by the SSA.

“My advice would be, watch your bank account and be prepared to – if you get tagged with one of these issues – it’s going to take some time.

And you just have to be patient and persistent if you expect to get anywhere.”

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