Christine Hunsicker, 49, founder and former CEO of fashion technology company CaaStle Inc, received a five-year federal prison sentence for securities fraud, the Manhattan US attorney’s office announced Thursday. She was also ordered to serve three years of supervised release. Hunsicker pleaded guilty in March to one count of securities fraud related to a scheme that defrauded hundreds of investors between 2019 and 2025.
Prosecutors described Hunsicker as a well-known entrepreneur in the fashion-tech sector who promoted CaaStle as a rapidly expanding business valued at over $1.4 billion. However, authorities alleged that Hunsicker was aware the company faced severe financial difficulties, including dwindling cash reserves and mounting expenses. To raise capital, she provided investors with numerous fraudulent documents, including falsified income statements, forged audited financial statements, fabricated bank records, and counterfeit corporate paperwork that misrepresented the company’s profitability and cash positions.
According to prosecutors, Hunsicker told investors their funds would purchase discounted shares from existing shareholders, but she fabricated the existence of these shareholders. The raised money was then diverted to serve as new capital for CaaStle while obscuring the company’s actual financial condition. Federal authorities indicated that Hunsicker engaged in continued fraudulent conduct even following the seizure of her electronic devices by law enforcement in March 2025.
CaaStle filed for bankruptcy after the company disclosed in spring 2025 that Hunsicker had substantially misrepresented its financial position. The company began as a web-based clothing rental platform serving plus-sized women before expanding to offer its platform to external fashion companies.
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