Christine Hunsicker, the 49-year-old founder and former CEO of fashion tech company CaaStle Inc, has been sentenced to five years in federal prison. The sentence, announced by the Manhattan US attorney’s office, also includes three years of supervised release.
Hunsicker pleaded guilty in March to one count of securities fraud. Authorities stated that the scheme, which ran from 2019 to 2025, defrauded hundreds of investors.
Prosecutors said Hunsicker presented CaaStle as a fast-growing business with a valuation over $1.4bn, despite knowing the company was in financial distress. She reportedly provided investors with falsified income statements, fake audited financial statements, fictitious bank records, and sham corporate documents that exaggerated the company's profits and cash reserves.
Prosecutors allege that Hunsicker used money raised from investors as new capital for the company, while concealing CaaStle’s true financial situation. Federal authorities also allege she continued fraudulent behaviour even after her electronic devices were seized in March 2025. CaaStle went bankrupt in spring 2025 after revealing Hunsicker had significantly exaggerated its finances.