The Securities and Exchange Commission (SEC) announced today that it has charged Christine Hunsicker, co -founder, chief executive, and President of Caastle, Inc., formerly Gwynnie Bee, Inc.
Caastle, a private company, is a technology and supply company that allows for clothing brands and retailers to offer clients based on clothing rentals, according to the complaint.
According to the complaint of the Capital Market Commission, Hunsicker has set up and provided false financial reports to existing and future investors from at least in February 2019 until at least March 2025. During this period, according to the complaint, the difference between the incorrect financial results of the Huns and the Huns and the Company’s incorrect results. In size on an annual basis, they are covered in false financial statements that exceeded revenue with more than 7,300%.
Hunsicker allegedly misleading investors that Caastle became a profitable until December 2022 and had exhibited increases in profitability after that, although the company’s losses increased and the company was never profitable. In addition, Hunsicker is alleged to provide investors with control reports under an independent foreign control company.
The complaint further argues that Hunsicker has ruled investors to believe that they are buying shares in secondary transactions from previous investors. In fact, as alleged in the complaint, these investors buy original shares directly from the company and the interests of investors were diluted as a result. Hunsicker is also alleged to have created and distributed false capitalization boards that missed the new shares and made it appear that excellent shares remained flat.
The complaint of the Securities and Exchange Commission, filed with the US District Court for the southern district of New York, accuses Hunsicker in violating the provisions of the opposite of Article 17 (a) of the 1933 movable values law and Article 10 (b) of the Act of the Exchange of Mobile Values and Article 10. The complaint seeks permanent suspension of relief, including behaviors based on behaviors, an employee and a manager, the discoloration of profits and biased interest and a civil sentence.
In a parallel action, the US Public Prosecutor’s Office for the southern district of New York (USAO) today announced criminal charges against Hunsicker.