Christine Hunsicker sentenced to 5 years for $300 million fraud
Christine Hunsicker, founder and former CEO of fashion-tech startup CaaStle, just got five years in federal prison for running a $300 million fraud.
She admitted to securities fraud earlier this year after tricking hundreds of investors between 2019 and 2025.
Along with prison time, she was also sentenced to three years of supervised release.
Hunsicker used fake financial reports
Hunsicker kept pitching CaaStle as a booming company, even as it was running out of cash, by using fake financial reports to attract more investment.
Instead of buying shares for investors like she promised, she funneled the money back into the struggling business.
Things finally collapsed when CaaStle went bankrupt in 2025, but even then, prosecutors say Hunsicker kept up the fraud after authorities seized her devices.
The case is a pretty clear warning about what can happen when founders cross ethical lines.