CaaStle founder charged over alleged 300 million dollar fraud scheme

Christine Hunsicker, the founder of bankrupt rental platform CaaStle, has been criminally charged over a 300 million dollar fraud case. Hunsicker has been accused of “defrauding investors of hundreds of millions of dollars through document forgery, fabricated audits, and material misrepresentations about her company’s financial condition”, US attorney Jay Clayton said.

Hunsicker’s alleged fraud scheme is said to have started back in 2019, when she began promoting the company as a rapidly growing rental business. Despite knowing CaaStle was in financial trouble, Hunsicker is believed to have told investors that the business was valued at 1.4 billion dollars in an attempt to raise capital for its operations.

In doing so, the entrepreneur was accused of falsifying income statements, financial statements, bank records and corporate documents that overstated CaaStle’s profit, revenue and available cash. It is believed that Hunsicker had fraudulently induced over 275 million dollars in investments.

Following two instances of submitting fake audits to separate investors in 2023 and 2024, Hunsicker is said to have expanded her fraud scheme to a new business venture, P180, “using false information about CaaStle’s success to raise approximately 30 million dollars” for the firm.

Upon the launch of an investigation last year, Hunsicker stepped down as CaaStle’s chair, however, she continued alleged fraudulent activities, selling eight million dollars of her shares in the company and more than five million dollars in P180 convertible notes without disclosing material information to investors. In February 2025, she then attempted to sell a further 19 million dollars in shares before law enforcement seized her electronic devices the following month.

According to the US Department of Justice, Hunsicker self-surrendered on July 18 and has been charged with a six-count indictment, meaning she could be facing a maximum sentence of 20 years in prison. The Securities and Exchange Commission has also filed a separate civil lawsuit.

CaaStle filed for Chapter 7 bankruptcy protection in June, with a petition submitted to the District of Delaware revealing plans to liquidate the business. The company, which has worked with brands like LK Bennett and Derek Lam on branded rental offerings, had assets in the range of 10 to 50 million dollars, and a number of creditors spanning 200 to 999, according to documents.