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Offbeat

Michigan woman charged in lucrative designer clothing rental fraud scheme

APB Team Published March 1, 2024 @ 12:00 pm PST

iStock.com/filadendron

A 42-year-old woman from Freeland, Michigan, has been arrested and charged with mail fraud, wire fraud and interstate transportation of stolen property in connection with an alleged fraudulent scheme involving designer clothing rentals and online sales.

The charges were announced by Damian Williams, the United States attorney for the Southern District of New York, following an investigation by federal prosecutors.

According to the allegations outlined in a complaint filed in Manhattan federal court, Brandalene Horn engaged in a fraud operation spanning from at least April 2022 through February 2024.

Horn reportedly opened hundreds of accounts with at least three victim companies that provide subscription-based clothing rental services, enabling customers to access and rent high-end apparel and accessories, including luxury designer items.

Instead of returning the rented items as per the terms of the rental agreements, Horn is accused of keeping them and subsequently selling them on an e-commerce marketplace.

The items, which included pieces worth thousands of dollars each, were allegedly listed for sale using the victim companies’ proprietary photographs and item descriptions.

Examples of items sold were Bottega Veneta sunglasses, a Zadig & Voltaire blazer and a Tory Burch sling bag. All items were sold at a fraction of their market value.

Prosecutors claim that Horn’s fraudulent activity extended to disputing charges for the stolen items with her credit union or canceling the credit and debit cards she had provided to the victim companies.

When her accounts were flagged or closed due to suspicious activity, Horn allegedly circumvented these measures by opening new accounts to continue stealing and selling luxury and designer goods.

The complaint further alleges that Horn stole over 1,000 items valued at more than $823,000 from the victim companies during the period of the scheme.

She is accused of selling these stolen items online for over $750,000.

In one specific instance detailed in the complaint, Horn is said to have listed a designer gown by K.Ngsley, valued at $1,390, for sale at $189 on an e-commerce marketplace, using the same photograph from a rental site.

DA Williams commented on the case, stating: “As alleged, Brandalene Horn perpetrated a lucrative scheme in which she defrauded at least three victim companies, stole hundreds of thousands of dollars’ worth of luxury and designer items, and then sold those stolen items online.”

If convicted, Horn faces significant penalties, including a maximum sentence of 20 years in prison for each count of mail fraud and wire fraud, and a maximum sentence of 10 years for interstate transportation of stolen property.

The investigation leading to Horn’s arrest was praised by Mr. Williams, who commended the exceptional investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York, as well as the assistance provided by the New York State Police and the Michigan State Police.

The charges against Horn are accusations, and she is presumed innocent unless and until proven guilty in a court of law.

Efforts to reach lawyers representing Horn for comment were unsuccessful at the time of reporting.

The case is being handled by the Office’s General Crimes Unit, with Assistant U.S. Attorneys Connie L. Dang and Katherine Cheng overseeing the prosecution.

Categories: Offbeat Tags: District Attorney, fraud, designer clothing, scheme, rental clothes, Damian Williams, Brandalene Horn, luxury brand, Michigan, DOJ

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