"Gentlemen Timepieces" founder charged for Ponzi-type scheme
Federal prosecutors charged the founder of a Beverly Hill's luxury watch consignment store for operating a Ponzi-type scheme, the Department of Justice announced Wednesday.
The FBI arrested Anthony Farrer, known as "The Timepiece Gentleman," on Tuesday inside a storage facility in Venice and held him in custody until his initial appearance in court. There, authorities read him his charges: a count of wire fraud, which carries a maximum sentence of 20 years in federal prison.
Farrer founded his business in 2017 in Texas. He expanded his company by establishing a location in Beverly Hills last year. He allegedly defrauded his clients from late 2022 until 2023 by promising to sell their luxury watches on consignment, but would keep the earnings for himself, according to a federal complaint.
Additionally, authorities claimed that Farrer would have his clients wire him money for luxury watches, but would not buy the desired piece. Instead, he would send them a different timepiece than what they requested. In one instance, Fareer allegedly sent a Rolex to one of the victims in lieu of money he owed. However, the watch belonged to another customer which Farrer was supposed to sell and not use to pay off his debts.
Federal prosecutors said Farrer lulled his victims into a sense of security by completing small transactions for them before taking on the more lucrative items.
Law enforcement believes that he defrauded about $3 million from his clients by never purchasing a watch for them or never returning their expensive jewelry.
Farrer's arraignment is scheduled for Dec. 14, but he is expected to return to court on Thursday for his detention hearing.