4 ms·

"Clothing-as-a-Service" startup charged with $300M fraud (2025)

33 points by mv4 7mo ago

mv4 7mo ago
A prominent entrepreneur who founded the now-bankrupt clothing technology startup CaaStle was criminally charged on Friday with defrauding investors out of more than $300 million, the U.S. Department of Justice said.
xenospn 7mo ago
40-under-40. They always are.
- mv4 7mo ago
  seems to be the pattern doesn't it. This hedge fund manager did a review on Youtube https://www.youtube.com/watch?v=V36kSqwjaaw&t=7s https://www.youtube.com/watch?v=V36kSqwjaaw&t=7s
runamuck 7mo ago
"This included alleged representations that CaaStle earned $66.3 million on revenue of $439.9 million in 2023, when it actually lost $81 million on revenue of $15.7 million." - Seriously, why would someone attempt to pull this? This lie seems really easy to catch. I don't get it?
- Bratmon 7mo ago
  "Fake it til you make it" is near-universal in the space. You just never hear about the ones who do make it.
- mv4 7mo ago
  Do investors do due diligence anymore?
burnt-resistor 7mo ago
Federal charges = pardon potential.
davidee 7mo ago
My thoughts: - Did someone really make a VC-backed "Rent-a-swag"? - Did they also go full Saperstein? Yep. They did.
neya 7mo ago
> This included alleged representations that CaaStle earned $66.3 million on revenue of $439.9 million in 2023, when it actually lost $81 million on revenue of $15.7 million. > lawyers said the indictment presented “an incomplete and very distorted picture” “There is much more to this story, and we look forward to telling it,” I wonder how that'll work out for the founder
recursivecaveat 7mo ago
After dropping BDO as their auditor this CEO just continued signing off in financial statements under BDO's name. The craziest part is her skating through getting caught initially. One investor noticed a falsified date: she told him that those were fake statements made for a university lecture and refunded his investment. Eventually the board caught on and prohibited her from raising more investments, but she just kept selling shares behind their backs. Everyone involved had some financial interest in not making a public fuss.

33 points by mv4 7mo ago

mv4 7mo ago

A prominent entrepreneur who founded the now-bankrupt clothing technology startup CaaStle was criminally charged on Friday with defrauding investors out of more than $300 million, the U.S. Department of Justice said.

xenospn 7mo ago

40-under-40. They always are.

mv4 7mo ago
seems to be the pattern doesn't it. This hedge fund manager did a review on Youtube https://www.youtube.com/watch?v=V36kSqwjaaw&t=7s https://www.youtube.com/watch?v=V36kSqwjaaw&t=7s

runamuck 7mo ago

"This included alleged representations that CaaStle earned $66.3 million on revenue of $439.9 million in 2023, when it actually lost $81 million on revenue of $15.7 million." - Seriously, why would someone attempt to pull this? This lie seems really easy to catch. I don't get it?

Bratmon 7mo ago
"Fake it til you make it" is near-universal in the space. You just never hear about the ones who do make it.
mv4 7mo ago
Do investors do due diligence anymore?

burnt-resistor 7mo ago

Federal charges = pardon potential.

davidee 7mo ago

My thoughts: - Did someone really make a VC-backed "Rent-a-swag"? - Did they also go full Saperstein? Yep. They did.

neya 7mo ago

> This included alleged representations that CaaStle earned $66.3 million on revenue of $439.9 million in 2023, when it actually lost $81 million on revenue of $15.7 million. > lawyers said the indictment presented “an incomplete and very distorted picture” “There is much more to this story, and we look forward to telling it,” I wonder how that'll work out for the founder

recursivecaveat 7mo ago

After dropping BDO as their auditor this CEO just continued signing off in financial statements under BDO's name. The craziest part is her skating through getting caught initially. One investor noticed a falsified date: she told him that those were fake statements made for a university lecture and refunded his investment. Eventually the board caught on and prohibited her from raising more investments, but she just kept selling shares behind their backs. Everyone involved had some financial interest in not making a public fuss.