Christine Hunsicker, CaaStle CEO, Confessed to Fraud. The Board Let Her Stay in Charge.

It should have been scandalous enough that there was a $283 million fraud.

But then the next shoe dropped: The company’s board of directors waited three months to tell investors about it. Not only that, the fraudster was allowed to stay on as chief executive during that time. The company had forced her to resign and disclosed the mess only after getting wind of a criminal investigation.

Not long ago, CaaStle looked like a high-flying start-up. It started as an online clothing rental company geared toward plus-size women, and later began selling its platform to other fashion retailers. The chief executive, Christine Hunsicker, had the vision. Her co-founder, Jaswinder Pal Singh, had the software chops.

Together they wooed prominent investors, including Bill Ackman and Henry Kravis. CaaStle raised more than $600 million, and at its height in 2018 it was valued at $1.25 billion.

In spring 2025, CaaStle disclosed that Ms. Hunsicker had been wildly overstating its financial results. CaaStle soon went bankrupt. This March, Ms. Hunsicker pleaded guilty to securities fraud.

Article source: https://www.nytimes.com/2026/06/07/business/caastle-fraud-christine-hunsicker.html