The authorities verified to Bloomberg that Christine Hunsicker, the founder of the fashion startup CaaStle, surrendered herself to them on July 18 in order to face fraud charges.

The indictment against her was unsealed by the U.S. Attorney for the Southern District of New York, who has accused her of wire fraud, securities fraud, money laundering, aggravated identity theft, and misrepresenting to financial institutions.
She is accused of defrauding her investors of over $300 million.

Hunsicker resigned as CEO of CaaStle in response to allegations by her board that she had misled investors regarding the company’s financial performance.

In June, the organization filed for bankruptcy after raising more than $500 million in funding.

In addition to the SEC’s case, the company is also being sued by an apparel company and an investment vehicle that CaaStle established regarding financial matters.

TechCrunch was informed by two former employees that they were not astonished to learn that the company was experiencing financial difficulties.

This was attributed to the fact that executives were extremely discreet regarding the company’s financial status.