A Beverly Hills watch dealer known as “The Watch Gentleman” is headed to prison after admitting to defrauding dozens of customers in recent years.
According to the Department of Justice's statement dated October 11, 36-year-old Anthony Farrer pleaded guilty to one count of wire fraud and one count of mail fraud while appearing in court today. The plea agreement outlines how Farrer created a typical consignment business model but began taking money from some sellers.
Farrer's job was to connect buyers and sellers of high-end watches by receiving these watches from customers by mail, displaying them in his Beverly Hills store, and selling them in digital marketing to watch enthusiasts who wanted to buy them. This was no small thing, as luxury names such as Rolex, Patek Philippe and Richard Mille filled their showcases. After selling a watch, it was Farrer's responsibility to send the money back to the original seller, minus a consignment fee, usually around 5 percent of the sale price; If it was not sold within a certain period of time or at the specified price, he would return it to the customer.
The problem was that others started doing business under the table with their luxury watches.
“Rather than returning the proceeds of watch sales or unsold watches back to customers, Farrer sold customer watches and kept the proceeds for himself,” the Justice Department said in a statement. “He also used client hours without the client's knowledge or permission – as collateral for loans he received from lenders.”
In addition to his alleged work as a middleman, Farrer also told his customers that he would buy watches on their behalf if they sent him money. But instead of seeking out and purchasing the specific watches these customers wanted, Farrer “took customers' money and used it for other purposes, including financing his lavish lifestyle, such as purchasing or renting luxury cars, apartments, and other luxury goods.”
“When a customer who sent him money asked Farrer about the status of a watch purchase, Farrer would often send the customer another watch to persuade the customer or lull him into a false sense of security about the status of the purchase.” DOJ announced. “Similar to a pyramid scheme, the other watch that Farrer sent to the customer usually belonged to other customers who sent that watch to him for consignment sale. These customers were unaware that Farrer was using their watches for this purpose rather than trying to sell the watches on behalf of the customers.”
Farrer received a total of $5.69 million in money and property from more than 40 people in one year. He now faces a maximum sentence of 20 years in prison for each fraud count, meaning he could spend up to 40 years behind bars.
Farrer's sentencing hearing is scheduled for January 31, 2025. Needless to say, he will be counting down the time until he is released.