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Christine Hunsicker was sentenced to five years in federal prison for a $300 million securities fraud scheme involving CaaStle Inc.

Christine Hunsicker was sentenced to five years in federal prison and three years of supervised release for her role in a $300 million fraud scheme. The Manhattan US attorney’s office announced the sentencing on Thursday, following Hunsicker's guilty plea to one count of securities fraud. As the founder and former CEO of CaaStle Inc, Hunsicker overstated the company's profits and cash reserves through falsified income statements, fake audited financial statements, and fictitious bank records. While she marketed CaaStle as a fast-growing business with a valuation exceeding $1.4 billion, the company was actually facing significant financial distress. Hunsicker also fabricated the existence of shareholders to raise capital, which she then used as new capital for the company while concealing its true financial state. CaaStle, a web-based clothing rental company for plus-sized women, eventually went bankrupt in the spring of 2025 after the company revealed the extent of Hunsicker's exaggerated finances.

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