A former startup executive who admitted to securities fraud in a scheme to raise almost US$300 million from investors has been sentenced to jail.
On Thursday, a federal judge in the Southern District of New York sentenced Christine Hunsicker — the founder and former CEO of fashion technology firm CaaStle Inc. — to five years in prison, followed by three years of supervised release, after she pleaded guilty to securities fraud. It also ordered her to pay US$283.3 million in forfeiture and restitution to her victims.
The plea followed an indictment alleging that, between 2019 and 2025, Hunsicker generated almost US$300 million from investors to finance her company, which she claimed was a fast-growing business with a valuation of over US$1.4 billion. In fact, the company was in financial distress.
According to U.S. authorities, Hunsicker deceived investors by providing them with falsified financial statements, bank records and other documentation that vastly overstated the company’s revenues, profits and cash flow. And rather than using the fresh capital as promised — to provide liquidity to existing shareholders — the new money was used to finance the company’s ongoing operations.
Ultimately, the scheme collapsed, and in June 2025, the company filed for bankruptcy.
Alongside the criminal charges, the U.S. Securities and Exchange Commission (SEC) also charged Hunsicker with violating federal securities laws. In its complaint, the SEC is seeking a permanent injunction, an officer-and-director ban, disgorgement and a civil penalty.