Famed Beverly Hills Watch Dealer Admits $6M Fraud
A Beverly Hills watch dealer known as "The Timepiece Gentleman" is headed to prison after confessing to defrauding dozens of clients in recent years.
According to an Oct. 11 statement from the Department of Justice, 36-year-old Anthony Farrer pleaded guilty to one count of wire fraud and one count of mail fraud in a court appearance today. The plea deal outlines how Farrer created a typical consignment business model but began taking money from some of his sellers.
Farrer's job was to connect buyers and sellers of high-end watches by receiving these timepieces from clients in the mail and displaying it at his Beverly Hills store and in digital marketing to sell to watch enthusiasts looking to buy them. It wasn't anything to scoff at as luxury names like Rolex, Patek Philippe, and Richard Mille filled his display cases. After he sold a watch, it was Farrer's responsibility to send the money back to the original seller minus a consignment fee, which was usually around 5 percent of the sales price; if they didn't sell within a specific time or specified price, he would return it to the client.
The issue was he started doing business under the table with other people's luxury watches.
"Instead of remitting watch sales proceeds—or the unsold watches themselves—back to the clients, Farrer sold the client watches and kept the proceeds for himself,” the DOJ said in its statement. "He also used client watches—without the client’s knowledge or permission—as collateral for loans that he took out from lenders."
On top of his work as a purported middleman, Farrer also told clients that he would purchase watches on their behalf if they sent him money. But rather than seeking out and buying the specified watches these clients wanted, Farrer "took the clients’ money and used it for other purposes, including to fund his lavish lifestyle such as buying or leasing luxury automobiles, apartments, and other luxury goods."
"When a client who had sent him money asked Farrer about the status of a watch purchase, Farrer often sent another watch to the client to tide the client over or lull them into a false sense of security regarding the status of the purchase," the DOJ explained. "Similar to a Ponzi scheme, the other watch Farrer sent to the client often belonged to other clients who had themselves sent him that watch for a consignment sale. These clients were unaware Farrer was using their watches for that purpose, rather than attempting to sell the watches on behalf of the clients."
In the span of a year, Farrer took a total of $5.69 million in money and property from more than 40 people. He now faces a maximum sentence of 20 years for each fraud count, meaning he could spend up to 40 years behind bars.
Farrer's sentencing hearing is scheduled for Jan. 31, 2025. Needless to say he'll be counting down the time until he's free.