'Timepiece Gentleman' Behind Bars After 'Ponzi-Type' Watch Consignment Scheme: DOJ

BEVERLY HILLS, CA — The operator of a Beverly Hill luxury watch consignment business was sentenced Friday to nearly six months in federal prison for defrauding customers in what prosecutors called a "Ponzi-type scheme."

Anthony Farrer, 36, who previously lived in downtown Los Angeles, pleaded guilty in October to wire fraud and mail fraud charges, according to the U.S. Attorney's Office. He was sentenced Friday to five years and 10 months in prison.

Prosecutors' estimated losses to about 40 victims at more than $5.6 million.

Known as "The Timepiece Gentleman," Farrer opened a location in Beverly Hills in 2022 after founding the company in Texas in 2017. His work involved connecting purchasers and sellers of high-end watches through consignment agreements that typically involved him earning a 5-percent commission on sales, according to prosecutors.

Farrer defrauded customers between 2022 and 2023. Rather than sending money back to customers following a sale, he would keep the proceeds for himself, prosecutors said.

In one instance, Farrer sent someone a Rolex watch instead of money he owned them — a watch owned by another victim who contracted with Farrer to sell it on consignment, according to prosecutors.

Multiple victims contacted law enforcement to report that they wired funds to Farrer for the purchase of a watch, or mailed him a watch to consign for sale, but were never paid for the watch or never received their watch back, prosecutors said.

"Farrer operated a scheme in a similar manner to a Ponzi scheme and would lull victims into a sense of security by engaging in smaller successful transactions prior to requesting or engaging in significantly larger transactions," the U.S. Attorney's office said in a release.

Farrer, who lived in a luxury rental property and was known to drive a Lamborghini and Ducati motorcycles, frequently traveled to Las Vegas to gamble, prosecutors said.

Farrer apparently abandoned the Beverly Hills store in 2023 and began posting about his travel throughout the United States on social media. In October 2023, a month prior to his arrest, Farrer continued to advertise watches for sale on his social media platforms, according to prosecutors.

City News Service contributed to this report.