CaaStle CEO Christine Hunsicker Pleads Guilty to $283M Fraud; Board Delayed Disclosure and Kept Her in Charge
By
Anita Raghavan
Summary
CaaStle, a fashion tech start-up, was hit with a $283 million fraud committed by its co-founder and CEO Christine Hunsicker, who pleaded guilty to securities fraud in March. Despite the fraud, the company's board waited three months to inform investors and allowed Hunsicker to remain as CEO during that period. The scandal involved fake audits, stock buybacks, and a damage control strategy led by the very executive who defrauded the company.
Source
bskyCaaStle CEO Christine Hunsicker Pleads Guilty to $283M Fraud; Board Delayed Disclosure and Kept Her in Chargenytimes.comKey quotes
· 3 pulledIt 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.
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