The founder of fashion tech company CaaStle has been sentenced to five years in prison for orchestrating nearly $300 million fraud after partially blaming a mirror falling on her head for the decision.

Christine Hunsicker was sentenced on Thursday after pleading guilty to one count of securities fraud earlier in the year. Judge Paul Oetken told the courtroom that Hunsicker “knew what she was doing and she knew it was wrong”, despite believing that her injury from the mirror “contributed” to the decision, according to reporting by the Financial Times.

Hunsicker founded CaaStle, a “clothing-as-a-service” business that helped companies rent apparel to customers with an option to buy in the long-term. The company raised hundreds of millions of dollars from high profile investors including Alphabet chair John Hennesy, who would later join the company’s board.

Hunsicker received widespread praise for her startup, making frequent appearances on television and being named one of Inc magazine's “Most Impressive Women Entrepreneurs” in 2016.

In 2025, the founder was charged with six counts spanning six years, including wire fraud, securities fraud, and money laundering. She pled guilty to one count of securities fraud in March. Her alleged offenses included promoting CaasTle as a “rapidly growing business valued at more than $1.4 billion”, the Southern District of New York Attorney’s Office wrote at the time, despite knowing that it was in fact “in financial distress with limited cash and significant expenses”.

Part of Hunsicker’s defence rested on her claim that she suffered brain trauma after a “thirty-pound” (13.6kg) mirror fell on her head as she was trying to move it. During the trial, she presented testimony from a physician who said that Hunsicker would “not have engaged in the fraud” were it not for the injury.

The FT reported that prosecutors had questioned this defence, arguing that she had made internet searches including “fraud”, “created an audit firm fake”, and “bank fraud vs. wire fraud severity”.

The judge additionally ordered that Hunsicker pay forfeiture and restitution to her victims, each in the amount of $283.3 million, and begin her prison sentence on 12 October.

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