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Photo by Michael Nagle/Bloomberg via Getty ImagesFashion tech entrepreneur Christine Hunsicker, who argued that she committed a near US$300 million fraud in part because a mirror fell on her head, has been sentenced to five years in prison.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorJudge Paul Oetken told the courtroom on Thursday that Hunsicker “knew what she was doing and she knew it was wrong” even though he believed the injury sustained from the mirror was “real” and “contributed.”Prosecutors had questioned the defence and pointed to internet searches they said Hunsicker made for “fraud” as well as “created an audit firm fake.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againHunsicker founded and led an apparel rental start-up called CaaStle — named for “clothing-as-a-service,” a play on the tech concept of software as a service.The company raised hundreds of millions of dollars from high-net-worth investors such as private equity titan Henry Kravis and chair of Alphabet John Hennessy, who also later joined the board.CaaStle once had coveted partnerships with brands such as Ralph Lauren and Vince, with Hunsicker becoming a frequent guest on television and at conferences for business leaders.But the company collapsed into bankruptcy after the investors realized she had been falsifying revenue figures and audited financial statements for years. A complaint from securities regulators said at one point Hunsicker exaggerated her revenues by 70 times. Hunsicker pleaded guilty to securities fraud in March.As part of her defence, Hunsicker claimed that she suffered brain trauma after a “thirty-pound” mirror fell on her head while she was trying to move it. She presented evidence from a physician who said that, absent the injury, she would “not have engaged in the fraud”.Her lawyer Michael Levy told the court on Thursday that the injury “eliminated executive functioning” that would otherwise have allowed her to control her actions.Hunsicker’s defence also said she recalled “almost nothing” from 2020, 2021 or 2022 and that she was often awake only four to five hours a day because of the injury.Prosecutors sought a sentence of more than 12 years. Lawyers for the government said Hunsicker was “cogent enough to contemplate the consequences of her false statements” and compared her to Elizabeth Holmes, the convicted fraudster behind blood-testing start-up Theranos.They cited a 40-minute talk Hunsicker delivered at a Goldman Sachs retail conference following the injury, as well as her internet searches after she had lied to investors, falsified audit reports and doctored bank statements.Even after a suspicious investor reported her to the board of directors, Hunsicker kept trying to raise funds and searched “bank fraud vs. wire fraud severity,” the government’s lawyers said.Hunsicker’s lawyers also argued that the founder had a pathological need to succeed and avoid conflict as well as issues with gambling and addiction that “took over” even after the fog from her injury lifted.Hunsicker told the judge she wanted to apologize to investors and employees and said she “started lying about numbers not to enrich myself but to avoid conflict.”Her lawyer also told the judge that the government’s comparison of Hunsicker to Holmes displayed a bias towards seeking harsher punishment for women who commit fraud. Prosecutor Alexandra Rothman called the idea “insulting” in her response.Oetken ordered her to pay forfeiture and restitution to her victims, each in the amount of US$283 million, and said she should start her prison sentence on Oct. 12.© 2026 The Financial Times Ltd Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.