United States Attorney for the Southern District of New York, Jay Clayton, and FBI Assistant Director in Charge of the New York Field Office, Christopher G. Raia, announced the unsealing of an indictment against Christine Hunsicker. The charges include wire fraud, securities fraud, money laundering, making false statements to a financial institution, and aggravated identity theft. The indictment accuses Hunsicker of defrauding investors in CaaStle and a related venture out of more than $300 million through false statements and fabricated documents.
Jay Clayton stated, “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.” He emphasized the risks associated with pre-IPO technology companies and affirmed his office’s commitment to protecting investors.
Christopher G. Raia added that Hunsicker allegedly used fraudulent financial statements to deceive investors and banks out of over $300 million. “This alleged scheme was stitched together with repeated deception and misinformation,” he said.
The indictment alleges that while promoting CaaStle as a growing business valued at over $1.4 billion, Hunsicker knew it was financially distressed. She reportedly provided falsified documents to raise capital and misled investors about the use of their funds. When confronted by an audit firm in October 2023 about a fake audit sent to an investor, she lied about its origin. Despite being removed from her position as Chair by CaaStle’s Board, she continued fraudulent activities.
Christine Hunsicker faces multiple charges: one count each for wire fraud and money laundering (each carrying up to 20 years in prison), two counts for securities fraud (each carrying up to 20 years), one count for making false statements (carrying up to 30 years), and aggravated identity theft (with a mandatory two-year sentence). These sentences are potential maximums prescribed by Congress.
Jay Clayton praised the FBI’s work on this case and acknowledged assistance from the U.S. Securities and Exchange Commission which has also initiated civil proceedings against Hunsicker. The case is being prosecuted by Assistant U.S. Attorneys Marguerite Colson and Alexandra Rothman under the Office’s Securities and Commodities Fraud Task Force.
