Luxury watch retailer pleads guilty to defrauding customers of $5.6 million

“The Timepiece Gentleman” admits to running a pyramid scheme

“The Timepiece Gentleman” pleaded guilty Thursday to defrauding dozens of customers of at least $5.6 million through his luxury watch consignment business.

Anthony Farrer, 36, who formerly lived in downtown Los Angeles, admitted to one count of wire fraud and one count of mail fraud. Farrer has been in federal custody since November 2023.

According to court documents, between November 2022 and November 2023, Farrer operated a consignment business under the name “The Timepiece Gentleman” from a location in Beverly Hills. The company connected buyers and sellers of high-quality watches, including brands such as Rolex, Richard Mille and Patek Philippe. Customers sent their watches to Farrer, who agreed to sell them and return the proceeds, minus a 5% shipping fee. If a watch didn’t sell, Farrer had to return it to the customer.

Instead, Farrer kept the proceeds from watches sold and failed to return unsold watches to their owners. He also used some of the customer’s watches as security for personal loans without the customer’s knowledge or consent. When customers inquired about the status of their watches, Farrer lied and claimed they had not been sold, even though he had already disposed of them for his personal gain.

Farrer also accepted money from customers who asked him to purchase certain luxury watches on their behalf. However, instead of fulfilling these desires, he used the funds for personal expenses, including luxury cars, apartments and other luxury items. In some cases, when customers requested updates on their purchases, Farrer sent watches that belonged to other customers, mimicking a pyramid scheme. He left the business in August 2023, but was still advertising watches for sale on his website in October 2023, as we reported in a previous article.

In total, Farrer defrauded over 40 victims and caused losses of over $5.6 million.

U.S. District Judge Josephine L. Staton has scheduled a trial for January 31, 2025. For each count of fraud, Farrer faces up to 20 years in prison.

The FBI, IRS Criminal Investigation and the Beverly Hills Police Department investigated the case. Assistant U.S. Attorney Joshua O. Mausner is prosecuting.