Fashion tech executive arrested for alleged $300 million fraud – Although Ms. Hunsicker has been fully cooperative and transparent with both the U.S. Attorney for the Southern District of NY and the SEC, they nonetheless have chosen to present to the public an incomplete and very distorted picture in today’s indictment. There is much more to this story, and we look forward to telling it,” said a statement Friday from Hunsicker’s attorneys, Michael Levy and Anna Skotko.
Hunsicker, 48, resigned in April after CaaStle’s board accused her of impropriety, and civil lawsuits accused her and the company of elaborate fraud. The company, formerly known as Gwinnie Bee, filed for Chapter 7 bankruptcy in June.
Hunsicker surrendered to authorities Friday morning and was expected to appear in federal court Friday afternoon, according to the announcement.
The indictment is a startling development for a once-celebrated executive who previously boasted of partnering with Ralph Lauren, Ann Taylor, Banana Republic and other major brands to offer consumers rental services.
The indictment charges Hunsicker with one count of wire fraud, two counts of securities fraud, and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. She’s also charged with one count of making false statements to a financial institution, which carries a maximum sentence of 30 years in prison, and aggravated identity theft, which carries a mandatory sentence of two years in prison.
