Christine Hunsicker, founder of fashion startup Castle, surrendered to the authorities on Friday to face fraud charges, authorities confirmed with Bloomberg.
A US lawyer for the Southern District of New York has sealed off the charges against her and accused her of wire fraud, securities fraud, money laundering, aggravated identity theft and lying to financial institutions. She has been accused of scamming investors from over $300 million.
Hunsicker resigned as CEO of Caastle after her board alleged that her board misunderstood investors about the company's financial performance. The company raised more than $500 million in funding and filed for bankruptcy in June.
In addition to the SEC case, the apparel company and investment vehicles launched by Caastle are also suing the company over financial issues. The two former employees told TechCrunch that they were not surprised to hear that the company was facing financial difficulties because of how modest executives were in the company's financial health.