In a shocking case of financial fraud, the founder of the esteemed luxury watch consignment store, ‘Gentlemen Timepieces,’ has been charged with operating a Ponzi scheme that conned victims out of millions of dollars. Anthony Farrer, also known as “The Timepiece Gentleman,” allegedly defrauded customers by promising to sell their luxury watches on consignment and then keeping the proceeds for himself. The investigation estimates that victim losses currently amount to approximately $3 million, and law enforcement continues to identify additional victims. Farrer’s arrest serves as a reminder of the importance of conducting thorough due diligence when engaging in high-end luxury transactions.
Founder of ‘Gentlemen Timepieces’ Consignment Store Charged with Luxury Watch Ponzi Scheme
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Introduction
The founder of the renowned luxury watch consignment store, ‘Gentlemen Timepieces’, has been charged with defrauding customers in a Ponzi-type scheme. Anthony Farrer, also known as “The Timepiece Gentleman,” was arrested by FBI agents on charges of wire fraud. This article explores the background of the case, the arrest and charges, the overview of the Ponzi scheme, victim losses, ongoing investigation, business operations, similarities to a Ponzi scheme, victim reports, and the abandonment of the Beverly Hills store.
Background
Anthony Farrer founded ‘Gentlemen Timepieces’ in Texas in 2017 and later opened a location in Beverly Hills in 2022. The business aimed to connect purchasers and sellers of high-end watches through a consignment model, where Farrer would collect a commission from the sale. However, it has been alleged that Farrer defrauded customers starting in late 2022 by promising to sell their luxury watches on consignment but keeping the proceeds for himself.
Arrest and Charges
Farrer was arrested without incident at a storage facility in Venice and was charged with wire fraud, a felony that carries a maximum sentence of 20 years in federal prison. He appeared in United States District Court for his initial appearance, and an arraignment has been scheduled for December 14. A detention hearing is also set to take place on Thursday.
Overview of Ponzi Scheme
The allegations against Farrer suggest that he operated a scheme similar to a Ponzi scheme. He would engage in smaller successful transactions to lull victims into a sense of security before requesting or engaging in significantly larger transactions. Victims reported wiring funds to Farrer for the purchase of a watch or mailing him a watch to consign for sale but never receiving payment or their watch back. The investigation is currently ongoing, and law enforcement continues to identify additional victims.
Victim Losses and Ongoing Investigation
To date, law enforcement estimates that victim losses from Farrer’s fraudulent activities total approximately $3 million. The investigation into the case is ongoing, with the FBI, IRS Criminal Investigation, and the Beverly Hills Police Department working together to uncover the full extent of the scheme and identify all the victims affected.
Business Operations and Lifestyle of Anthony Farrer
According to the complaint, Farrer lived a luxurious lifestyle while running ‘Gentlemen Timepieces.’ He resided in a luxury rental property, drove a Lamborghini and Ducati motorcycles, and frequented Las Vegas for gambling. These details about Farrer’s lifestyle raise questions about the source of his wealth and whether it involved funds obtained through the alleged Ponzi scheme.
Similarities to a Ponzi Scheme
The case against Farrer points to striking similarities to a traditional Ponzi scheme. He would collect funds from victims under the guise of purchasing luxury watches but instead used those funds to pay off other victims or support his lavish lifestyle. This classic characteristic of a Ponzi scheme demonstrates how Farrer was able to sustain his fraudulent activities for a significant period.
Victim Reports and Additional Identification
Multiple victims came forward and contacted law enforcement to report their losses. They stated that they wired funds for the purchase of a watch or sent their watch to Farrer for consignment but never received payment or their watch back. These victim reports have been crucial in building the case against Farrer and shedding light on the extent of the scheme. As the investigation progresses, law enforcement continues to identify additional victims who fell prey to Farrer’s fraudulent activities.
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Abandonment of Beverly Hills Store and Social Media Activity
In August 2023, Farrer apparently abandoned the ‘Gentlemen Timepieces’ store in Beverly Hills. Subsequently, he began posting on social media about his various travels throughout the United States. Shockingly, even after abandoning the store, Farrer continued to advertise watches for sale on his social media platforms as recently as October 2023. This behavior highlights the audacity and disregard for potential consequences exhibited by Farrer.
Conclusion
The case against Anthony Farrer, the founder of ‘Gentlemen Timepieces’ consignment store, demonstrates the devastating impact of Ponzi-type schemes on unsuspecting victims. With estimated losses of approximately $3 million, law enforcement agencies are working diligently to bring justice to the affected individuals and identify all the victims. This case serves as a reminder to exercise caution and conduct thorough due diligence when engaging in consignment or investment opportunities to avoid falling victim to fraudulent schemes.
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